Buildings Deep Dives

Gas demand: Fossil gas represented only 13% of Bulgaria’s gross inland energy consumption in 2019, considerably lower than the EU-27 average of 24.4%. Industrial activities were the dominant consumers, accounting for 40% of the gross inland gas demand, with 34% used for energy needs. Notably, only 3% and 4% of fossil gas was consumed by households and commercial/public services respectively. Furthermore, only 5% of the country’s total electricity production was generated from fossil gas. 

Decreasing consumption since 1990: There’s been a remarkable decrease in gas consumption since 1990, from over 60 TWh to less than 30 TWh in 2020, or about 3 bcm. This sharp drop is attributed to the turmoil during the transition to a market economy, which led to a dramatic decrease in gas demand from district heating companies and industry. 

Dependency on Russia: Until 2020, Bulgaria was largely dependent on Russia for its fossil gas needs, with a 75% import share, considerably higher than the EU average of 43.2%. However, this dependence was disrupted when Russia cut off its gas supply in April 2022, causing Bulgaria to seek alternative sources, including the issuance of short-term LNG import tenders. 

Heating mix: Merely 2% of Bulgarian households are connected to the gas grid¹ Bulgarian Association Natural Gas: http://www.naturalgas.bg/infoen/9. Bulgarian households predominantly rely on solid fuels and direct electric heating appliances for heating. District heating, primarily supplied by fossil gas, is a significant source of heating in Sofia and other large regional cities. This situation underlines the need to improve district heating networks, which are currently poorly managed and inefficient. 

Gas grid connections: According to the 2021 annual report, 124,652 households and 7,772 non-household customers were connected to the gas distribution grids as of 2020, indicating a 40% increase in household gas customers from 2017. There is 1 gas Transmission System Operator (TSO) and 24 gas Distribution System Operators (DSOs) operating in Bulgaria, with the DSO network growing by 153-154 km annually from 2017-2020¹ Annual report of the national energy and water Commission Bulgaria: https://www.ceer.eu/documents/104400/7169677/C21_NR_Bulgaria_EN.pdf/593cca36-7e43-d590-acb1-84a401efe7e5 .

Lack of mandatory savings measures: Despite the energy crisis, no mandatory energy savings measures have been implemented for households or non-residential buildings by the Bulgarian government. There has been no significant government-led energy savings campaign nor efforts to encourage gas savings through targeted behavioral measures. 

Government information on energy efficiency: Information on energy efficiency is available on the Sustainable Energy Development Agency (SEDA) website, offering guidance on behavioral changes and low-cost energy saving investments such as ceiling insulation and improving gas boiler performance¹ Government guidance: https://www.seea.government.bg/documents/Broshura_AUER.pdf. However, this information has not been effectively communicated or publicized, limiting its impact on public awareness. 

Private sector and civil society initiatives: Some private sector and civil society initiatives, such as the “Donate Energy” campaign, ACT4ECO platform¹ Website of ACT4ECO: https://act4eco.eu/about-us/?lang=bg, and “Training for Energy Consumers Empowerment Project”, aim to foster energy savings. Notably, the NGO EnEffect, offers consultations, analytical reports, conferences, and workshops targeting local-level climate action. 

Least efficient buildings and heating appliances: No dedicated efforts have been identified to improve the operational efficiency of existing gas boilers or ventilation systems, such as by adjusting set points. There are also no systematic efforts from the national government to identify the least efficient buildings and gas-fired heating appliances in Bulgaria. 

Price interventions: In December 2021, the government implemented price interventions by passing a law capping prices of electricity, district heating, and water. Further regulatory decisions kept electricity price increases marginal through cross-subsidisation methods. Similarly, district heating prices have been allowed to increase, but at a rate below the increase of operating costs following the surge in fossil gas prices. In May 2022, further legislation to limit price increases for gas, electricity and district heating for consumers was passed. 

Limited usage of gas boilers in Bulgaria: In Bulgaria, the use of gas boilers is limited, with only 2% of households, predominantly middle and upper-class, connected to the gas grid. The National Energy and Climate Plan (NECP) includes the expansion of the gas distribution network as a strategic objective. However, the country’s reliance on firewood and coal for heating is a significant issue, and fossil gas is viewed as a more sustainable alternative in national policies. 

Lack of gas or oil boiler bans: Bulgaria currently has no gas or oil boiler bans in place. However, the National Program for the Control of Air Pollution (2020-2030) includes a plan for the staged decommissioning of inefficient solid-fuel heating devices. In this program, switching to fossil gas is mentioned as a potential replacement option. The country also does not offer any explicit energy or carbon pricing scheme outside of the EU Emissions Trading Scheme to encourage a reduction in gas consumption. 

Support for gas-based technologies: The Bulgarian government offers operational support for gas-based technologies in the building sector. This support is notably present in initiatives to replace wood and coal solid-fuel stoves and boilers. One such initiative is the Project “Bulgarian Municipalities Working Together to Improve Air Quality “(LIFE-IP Clean Air)¹ Project website: http://lifeipcleanair.eu/en/index.html.

Government’s response to rising energy prices: In response to rising energy and food prices, the Bulgarian government in May 2022 approved a substantial package to assist companies and low-income households. Concerning fossil gas, the measures included the reduction of the VAT rate to 9% for one year and the removal of excise duties on fossil gas, electricity, and methane. Despite these measures, retail gas prices in the first half of 2022 were 108% higher than the same period in the previous year. 

Incentive for switching to electricity: A notable 60% increase in gas prices was announced in August, creating a strong incentive for households to switch to electricity. 

Consumer preferences for heating appliances: According to a consumer study, the majority of heating appliances in Bulgaria are between 5 to 15 years old. Of those surveyed, 42.6% had most recently purchased a boiler as their heating appliance.

Bulgarian housing stock overview:  Bulgaria’s housing stock comprises around 2 million residential buildings. More than 30% of the residential buildings remain unoccupied, with higher vacancy rates in rural areas (43%) compared to urban regions (25%). Most homes are single-family units (85%) constructed between 1950 and 1990, revealing an aging stock in need of renovation. Energy efficiency is a significant concern, with only 7% of inhabited buildings meeting current energy regulations, and many (91%) falling into poor energy performance classes E, F, and G¹ Sofia Energy Agency – SOFENA. Bulgaria. Baseline Assessment Report (2021).

Policies and financial support for energy-efficient renovations: Several programmes provide public financial support to incentivize building renovations. The Residential Energy Efficiency Credit Line (REECL)¹ Programme website: http://reecl.org/ and the Energy Efficiency and Renewable Sources Fund (EERSF)² Programme website: https://www.bgeef.com/en/energy-efficiency-measures/municipalities/ are supported by international entities like the European Commission and the World Bank. However, despite these incentives, publicly supported renovation projects have faced challenges, including co-financing difficulties in multi-family buildings. To address this, Bulgarian authorities are planning substantial renovation programs under the National Recovery and Resilience Plan with a budget of 2.5 billion BGN, focusing on multi-family homes. 

Decentralization Efforts and Quality Assurance in Renovation Projects: Critics have raised concerns about the high centralization of Bulgarian building support policies. Calls for greater decentralization aim to involve regional and local authorities in program implementation, potentially encouraging more localized pressure on housing associations for renovation investments. Alongside decentralization, ensuring quality assurance and monitoring practices in renovation projects becomes crucial as programs expand. 

Regulatory Landscape and Challenges: Bulgarian energy efficiency standards for new constructions are considered less demanding compared to EU benchmarks, especially for single-family homes and office buildings¹ BPIE analysis of national energy standards for new constructions: https://www.bpie.eu/wp-content/uploads/2021/06/Nearly-zero_EU-Member-State-Review-062021_Final.pdf.pdf . However, minimum renewable energy requirements align with EU standards. Despite policy initiatives like the National Plan for Nearly Zero-Energy Buildings 2015-2020 and the Energy Efficiency Act of 2015, implementation has been hindered by various obstacles, including unrealistic expectations, building neglect, and administrative gaps. Stricter regulations, rule of law, and comprehensive monitoring tools are needed to ensure responsible use of funds, especially as large-scale renovation programs are funded through the National Recovery and Resilience Plan.

Addressing Corruption and Ensuring Compliance: Given the significant funds allocated to renovation programs, there is a risk of potential misuses and corrupt practices. To safeguard public resources, it is essential to address these issues and enforce compliance with building codes. Implementing stronger regulations and monitoring mechanisms will contribute to successful and impactful building decarbonization efforts in Bulgaria. 

Limited Data on Heat Pump Deployment in Bulgaria: Bulgaria’s lack of reliable data on heat pump deployment and the heating appliance stock hampers the ability to accurately assess the current situation. The European Heat Pump Association does not collect data for Bulgaria, making it difficult to obtain comprehensive information on the adoption and usage of heat pumps in the country. This data gap presents a challenge in understanding the scale and impact of heat pump technology in Bulgaria’s decarbonization efforts. 

Bulgaria’s Progress in Renewable Heat Production: According to Eurostat renewable heat statistics, Bulgaria produced 111.6 ktoe (thousand tons of oil equivalent) of renewable heating and cooling from heat pumps in 2020. Among this total, approximately 90 ktoe is estimated to come from air-source heat pumps, while around 21.6 ktoe is estimated to come from water-source heat pumps. However, no energy supply from geothermal heat pumps was reported. When considering the share of renewable heat in relation to Bulgaria’s gross final energy consumption for heating and cooling, this figure represents 2.7%. While this places Bulgaria ahead of countries like Slovenia, Czechia, Poland, Croatia, Hungary, and Romania, it falls behind Greece and Italy based on Eurostat statistics. 

Support Programmes for Heat Pump Adoption: Bulgaria has implemented several support programs to encourage households and businesses to invest in heat pumps. These include the Residential Energy Efficiency Credit Line (REECL3) offering loans and grants for homeowners¹ Programme description: https://replace-project.eu/wp-content/uploads/2020/05/D2.1_Policy-Framework-Conditions-Assessment-and-Outlook-for-RHC.pdf , the Energy Efficiency and Renewable Sources Fund (EERSF) providing project financing and technical aid for energy efficiency projects² Programme description: https://www.bgeef.com/en/energy-efficiency-measures/municipalities/ , and the Urban Development Fund delivering preferential credits for energy improvements in homes. Moreover, the operational program “Renewable energy, energy efficiency and energy security” funds geothermal energy use in public buildings, and the government provides a property tax rebate for buildings with energy-efficient certification³ Overview of heating subsidies in Europe: https://www.coolproducts.eu/wp-content/uploads/2020/12/Analysis-of-Fossil-Fuel-Incentives-in-Europe_FINAL_.pdf.

Lack of Government Incentives for Electrification and Carbon Pricing: The Bulgarian government has not implemented systematic efforts to incentivize electrification or penalize fossil fuels through energy pricing. There are no specific measures in place to lower electricity tax rates or network charges to encourage the adoption of electric heating alternatives. Similarly, no carbon pricing mechanism has been introduced to discourage the use of fossil fuels and promote decarbonization in the building sector. The absence of these incentives hinders the widespread adoption of electric heating technologies and slows down the decarbonization process. 

Electricity to gas price ratio: Energy prices in Bulgaria have experienced significant changes, affecting the competitiveness of heat pumps and providing certain incentives for electrification. Comparing fossil gas and electricity prices, Bulgarian households paid close to the EU27 average for fossil gas (9.55 Eurocents/kWh) but had the second-lowest electricity tariffs after Hungary (10.01 Eurocents/kWh) based on Eurostat data for Q1 2022. As a result, Bulgaria had the lowest electricity to gas price ratio in the EU (1.14), creating a significant advantage for electrification in terms of heating and transportation. 

District Heating Infrastructure and History: Bulgaria’s district heating systems, built in the 1950s and 1960s, initially faced collective heat supply issues and lacked individual consumer flexibility. Maintenance and investment limitations led to declining efficiency. However, reforms, investments, and meter installations reversed the disconnection trend, resulting in increased households connected to district heating. Today, district heating serves 26.5% of the population, but challenges remain¹ Worldbank report on district heating in Bulgaria: https://ieg.worldbankgroup.org/sites/default/files/Data/reports/ppar-bulgariadistrictheating.pdf .

Fuel Usage and Renewable Alternatives: As of 2019, fossil gas dominated district heating fuel usage, accounting for 94% of supplies, while renewables and non-renewable waste contributed only 3% each¹ Government report on cogeneration: https://energy.ec.europa.eu/system/files/2022-01/BG%20CA%202020%20en.pdf. Despite some growth, renewables constituted only 4.6% of the net heat output in 2020, necessitating a strategic shift towards cleaner energy sources and significant infrastructure and technological development. 

District Heating Companies and Restructuring Efforts: Toplofikatsiya Sofia EAD, the largest district heating provider in Bulgaria, faces financial issues and potential nationalization. Private operators manage other district heating companies. Sofia Municipality plans to restructure Sofia District Heating, emphasizing cooperation between state and municipal institutions. 

Financing, Regulation, and Policy: District heating projects in Bulgaria rely on grants from the European Union and other international organizations. Local governments include heating and cooling considerations in their energy plans, but detailed heat planning is lacking. There are no district heating connection obligations at the local level, and the national regulator has the power to adjust regulated prices based on fossil gas fluctuations. 

Future Opportunities and Challenges: Bulgaria’s district heating landscape faces opportunities and challenges. District cooling requires development, and heat losses (25%)¹ National statistics about district heating: https://www.nsi.bg/en/content/17163/district-heating-and-cooling-systems are a concern, leading to disparities in heating prices among regions. The challenge is to increase energy efficiency, promote renewable energy sources, reduce heat losses, and ensure equitable pricing. Stakeholders must collaborate on actionable plans to drive the decarbonization of buildings in Bulgaria. 

Declining domestic fossil gas production and increased imports: Croatia has experienced a significant decline in domestic fossil gas production, dropping by 68% from 2010 to 2020. This has led to a substantial increase in fossil gas imports, which have risen by 105% during the same period. 

Stable fossil gas consumption: Despite the decline in domestic production, Croatia’s fossil gas consumption has remained relatively stable since 2010, both in absolute terms and as a proportion of gross available energy. 

Per capita fossil gas consumption ranking: In terms of per capita fossil gas consumption, Croatia ranked slightly below the EU average in 2020. It trailed behind countries like Italy, Hungary, and the Czech Republic but surpassed Romania, Poland, Greece, Bulgaria, and Slovenia. 

Fossil gas usage in household heating: The use of fossil gas for home heating has experienced significant growth since the 1990s. In 2020, approximately 19 TWh of fossil gas were consumed for space and water heating purposes in households. 

Energy mix for household heating: The energy mix for space heating and domestic hot water in Croatian households in 2020 consisted of 56% solid biomass, 25% fossil gas, 7% electricity, 6% district heating, 4% fuel oil, and around 1% ambient heat from heat pumps¹Assessment of the potential for efficiency in heating and cooling in Croatia: https://energy.ec.europa.eu/system/files/2022-01/HR%20CA%202020%20en.pdf

Lack of compulsory energy savings measures: Croatia lacks mandatory energy savings measures for households and non-residential buildings, hindering decarbonization efforts and overall energy efficiency in the building sector. 

Voluntary energy savings guidelines: The Croatian government has introduced voluntary energy savings guidelines¹ Newspaper article about efficiency measures: https://www.total-croatia-news.com/politics/64637-government-recommends-heating-temperature-of-21-c-cooling-temperature-of-25-c, encouraging behavioural changes and energy-saving practices to address the energy crisis and align with EU targets. 

Limited government support for energy efficiency investments: Croatia lacks targeted government measures to incentivize low-cost energy savings investments, undermining significant improvements in building energy efficiency. 

Insufficient focus on boiler efficiency and ventilation: There is a lack of official efforts in Croatia to enhance the energy performance of gas boilers and improve ventilation systems in buildings, missing opportunities for energy waste reduction. 

Private sector and civil society initiatives: While comprehensive government measures are lacking, the private sector and civil society in Croatia have taken some initiatives to promote energy savings and efficiency, raising awareness and encouraging energy-saving behaviours. 

Energy efficiency obligation scheme: Croatia plans to implement an Energy Efficiency Obligation Scheme to incentivize energy efficiency improvements and encourage energy-saving measures in the market, involving obligated suppliers fulfilling their obligations through various means. 

Lack of data on heating appliances and gas boiler stock: Detailed data on heating appliances and the stock of gas boilers, including their age distribution, is unavailable in Croatia, posing challenges for effective decarbonization strategies. 

Fossil gas boilers as backup technologies in new buildings: Despite relatively strict building standards for new buildings, fossil gas boilers are commonly installed as “backup” technologies alongside air-source heat pumps but could be used more commonly in practice. 

No ban on fossil gas boilers in existing buildings: There is currently no prohibition or widespread discussion regarding the ban of fossil gas boilers in existing buildings in Croatia. 

Turbo boilers replacement challenges: Approximately 75,000 turbo boilers are estimated to be in operation in Croatia and replacing them with modern condensing gas boilers could result in gas savings. However, the replacement process is costly and supports lock-in due to chimney replacement requirements. 

Subsidies and pricing measures: Direct subsidies for condensing gas boilers have been provided in earthquake-affected regions¹Government communication: https://www.fzoeu.hr/hr/sufinanciranje-kondenzacijskih-bojlera/7691. No energy pricing measures have been implemented to reduce fossil gas consumption. District heating systems supplied by CHP units face a competitive disadvantage within the EU ETS framework. 

Energy price interventions: Since the beginning of the energy crisis, the Croatian government has taken measures to reduce fossil gas prices¹Government overview: https://vlada.gov.hr/UserDocsImages/Vijesti/2022/02%20velja%C4%8Da/16%20velja%C4%8De/Paket%20mjera%20za%20ubla%C5%BEavanje%20rasta%20cijena%2016-02-2022.pdf . Between April 2022 and March 2023, the tax on gas was reduced from 25% to 5% before it was permanently reduced to 13% from March 2023 onwards. Additionally, a direct subsidy of 0.1 HRK/kWh for households and 0.15 HRK/kWh for industries has been introduced. It was prolonged until April 2024.  

Building stock composition and age: Residential buildings comprise 72% of Croatia’s building stock, with a gross floor area of 146.9 million m2, while non-residential buildings account for 28%, totalling 57.5 million m2. Nearly half of the building stock was constructed before 1981, and only 9% was built between 2010 and 2018. 

Energy performance assessment and database integration: A comprehensive assessment of the energy efficiency of buildings in Croatia has been conducted, identifying nearly 14% of buildings falling under EPC classes E, F, or G with high primary energy consumption. The integration of the energy performance certificate (EPC) database with the national energy management system is being explored for access to reliable information and potential energy efficiency investments. 

Limited availability of national-level GIS data: Currently, there is no publicly available national-level spatial data (GIS) on the building stock, although some data is accessible for specific cities, such as Zagreb¹See here: https://geoportal.zagreb.hr/. 

Low refurbishment rates and limited subsidies: Croatia has one of the lowest renovation rates in the EU, with only 0.7% annual renovation rate between 2014 and 2019. Periodic investment incentives have been available for building refurbishment, but there are no public subsidies for renovation in 2023¹Overview over legislation: https://www.fzoeu.hr/hr/nacionalni-javni-pozivi-i-natjecaji/1367?s=1&s=2&p=2&k=1&k=12&k=2&k=13&k=3&k=4&k=14&k=15&k=5&godina_objave=2022 .  

Renovation programmes for public and multi-family buildings: Croatia has developed energy renovation programs for public buildings¹Government communication: https://mpgi.gov.hr/UserDocsImages/dokumenti/EnergetskaUcinkovitost/PROGRAM_EN_OBN_ZGRADA_JAVNOG_SEKTORA_do2030.pdf, focusing on those with poor energy properties. Public sector buildings represent 27.4% of the non-residential stock. Similarly, renovation programs are in place for multi-family buildings, aiming for an annual renovation rate of 1% to 3% between 2021 and 2030. 

Heat pump market data: Heat pump market statistics are not officially collected in Croatia, but industry reports estimate sales of approximately 5,000 to 6,000 hydronic heat pumps per year, with air-to-water systems dominating the market. 

Regional variations in heat pump adoption: In the Coastal region, heat pumps represent 80-90% of heating technologies in new buildings due to lower heat demand and a lack of developed gas infrastructure. In the colder Continental region, heat pumps compete with biomass, gas, and district heating systems. 

Barriers to heat pumps: Generally, the potential of heat pumps for residential heating in Croatia is limited by an inefficient building stock as many buildings are considered unsuitable for heat pumps¹Government communication: https://mpgi.gov.hr/UserDocsImages/dokumenti/EnergetskaUcinkovitost/DSO_14.12.2020.pdf . Concerning ground coupled and ground water source heat pumps, the adoption is limited by time-consuming and costly preparation phases, including fees imposed for water offtake¹⁰. Implementing sea water heat pumps is also challenging due to legislation on the right of use, requiring community support for large-scale systems. 

Need for subsidies and support for heat pump uptake: Approximately 50% of households in Croatia use wood/biomass for heating, making them potential candidates for heat pump adoption, especially in the form of complementary hybrid systems using air-to-air heat pumps. However, many of these households have low incomes, necessitating grants and support to facilitate significant uptake. 

Skill gaps and training for heat pump installers: Croatia faces a shortage of skilled heat pump installers compared to traditional heating technologies like boilers. Adult education institutions currently lack dedicated programs for heat pumps, although larger European companies have their own training programs. Gas equipment installers, on the other hand, are well trained and present potential for upskilling the workforce to other sectors in the future. 

Electricity to gas price ratio: As both electricity and gas prices increased in the wake of the Russian invasion in Ukraine, the electricity to gas price ratio only slightly decreased between October 2021 and May 2022. 

Heat sources and district heating market overview: In Croatia, fossil gas accounts for 91.1% of heat production in district heating, most of it used in CHPs, followed by oil (8.5%). Renewable and waste heat sources contribute only 0.4% to district heating ¹Annual energy report: https://eihp.hr/wp-content/uploads/2023/01/Energija%20u%20HR%202021_WEB_LR.pdf. Buildings represent 41% of final energy consumption for district heat, with district heating serving 158,000 customers through an extensive 443 km network while industry accounts for 57% of heat consumption. The remaining district heat is supplied to industrial consumers. 

Regulation and pricing of district heating: Thermal energy distribution to customers is regulated, with separate tariff items for production, distribution, and supply. Heat prices, without taxes, vary across cities, averaged around 17 HRK (2,28 EUR)/kWh for households and 34-35 HRK (4,51-4,65 EUR)/kWh for industry and business customers in 2022. As part of the energy subsidy plan, VAT for thermal energy has been permanently reduced from 25% to 13%¹ Government communication: https://vlada.gov.hr/UserDocsImages/Vijesti/2022/02%20velja%C4%8Da/16%20velja%C4%8De/Paket%20mjera%20za%20ubla%C5%BEavanje%20rasta%20cijena%2016-02-2022.pdf . 

District heating competition and ownership structure: District heating faces competition from individual gas boilers and electric heat pumps, with no district heating connection obligations at the local level. District heating and fossil gas networks are interlaced and often owned by different entities. HEP Toplinarstvo, a national company, supplies 91.2% of district heat in Croatia, with the largest district heating system in Zagreb serving half of the urban populations¹ Annual energy report. 

Challenges and renovation projects: Renovation projects aim to address issues such as distribution losses, outdated infrastructure, and the expansion of district heating. Rijeka¹Information on the project: https://energo.hr/projekti/obnova-toplinarstva-grada-rijeke/, Osijek² Information on the project: https://vrelovod-osijek.com.hr/informacije-o-projektu, and Zagreb³ Information on the project: https://vrelovod-zagreb.hr/o-projektu/ have ongoing projects to improve the distribution network, reduce losses, and optimize production efficiency. However, proper zoning for district heating and competition with gas grids pose challenges as well as the social acceptance of refurbishment projects.  

Billing and consumption monitoring: District heating billing in Croatia is challenging, with the use of heat allocators and artificial division of heating bills by square meters. Individual heat meters are increasingly installed, but feedback on energy consumption is limited. Attempts to introduce new billing practices reflecting actual consumption faced opposition and were reverted, leading to lower-consuming households subsidizing wasteful behaviour. 

Import Dependency: The Czech Republic is heavily import dependent for natural gas, with 54% of total supplies coming from Russia in 2021. This highlights the need to reduce reliance on imported gas for building heating. However, in the first quarter of 2023, the Czech Republic was able to get rid of its dependence on gas imports from Russia. All deliveries were made via Germany consisting of liquefied gas from Belgium and the Netherlands, as well as gas from Norway. 

Gas Consumption in Buildings: In 2020, approximately 40% of total gas consumption in the Czech Republic was used in buildings, representing 25% of final energy consumption in the sector. Natural gas consumption in households has been gradually declining since its peak in 2003¹Statistics of the Ministry of Industry and Trade . 

Per Capita Consumption: The per capita gas consumption in the Czech Republic is slightly below the EU average, but per capita gas consumption in buildings is slightly above the EU average. 

Transition Away from Coal: Coal still represents a significant portion of final energy consumption for space and water heating in households, as well as in district heating. While natural gas was seen as a transitional fuel away from coal, geopolitical developments are prompting a review of this assumption. 

Diverse Heating Sources: Solid biomass, district heating, coal, and electric heating have above-EU-average shares in final energy consumption for space and water heating in the Czech Republic.

Czechs Reduce Natural Gas and Electricity Consumption: An analysis indicates a 19,7% reduction in natural gas consumption in 2022 compared to 2021¹Article about energy consumption in the Czech Republic: https://czechdaily.cz/czechs-consumed-almost-one-fifth-less-gas-year-over-year-in-january/  . Electricity savings are also observed for the first time since 2020 with the consumption in the third quarter of 2022 decreasing by 4,1% compared to the third quarter of 2021²Article about electricity savings: https://www.seznamzpravy.cz/clanek/ekonomika-firmy-cesi-vzali-energetickou-krizi-vazne-snizili-spotrebu-plynu-i-elektriny-216240 . 

Energy Savings Manual and Pending Regulations: In 2022 the Czech trade ministry released an energy savings “manual” and offered free consultations for energy-efficient renovations. Recommendations include behavioral measures, such as shading windows and turning off lights, and the installation of LED lightbulbs.  

Media and Civil Society Engagement: In 2022 the topic of gas and electricity savings gained broad coverage in the media and the civil society, with organizations like Greenpeace and Hnutí Duha actively discussing the issue. 

Energy Consultation Centers (EKIS): Czechia has approximately 60 EKIS consultation centers that provide free public services to support energy-saving and renewable energy initiatives. These centers have around 300 consultants, approximately 20 per region¹Study about the green transition in the Czech Republic: https://climateandcompany.org/publications/six-sector-specific-ideas-for-czechias-green-transition/. 

Price interventions:  The government has introduced a cap on electricity and gas prices currently valid till the end of 2023. For households, neither the cap on gas prices nor the cap on electricity prices is linked to a threshold incentivizing energy savings¹Article about price interventions: https://www.mpo.cz/cz/rozcestnik/pro-media/tiskove-zpravy/vlada-schvalila-zastropovani-cen-energii–pomuze-jak-domacnostem–tak-firmam–270228/. 

Subsidies for Energy Efficiency in Residential Housing: The New Green Savings programme offers subsidies for long-term energy efficiency plans, including insulation, heat pumps, shielding technology, solar PV and thermal systems, and ventilation with mechanical heat recovery. Last year, this programme was amended with the New Green Savings Light programme which provides subsidies in advance for low-income households aiming to directly reduce energy consumption by smaller measures such as replacing windows. Many single-home owners choose to renovate without public support due to administrative issues¹Study about the green transition in the Czech Republic: https://climateandcompany.org/publications/six-sector-specific-ideas-for-czechias-green-transition/, and awareness of the New Green Savings programme remains low. 

Gas Boiler Sales and Age Distribution: In 2020, the domestic market in the Czech Republic saw a total of 85.6 thousand gas boilers sold, with the majority being condensing and hanging boilers. Sales have been increasing, mainly due to the replacement of old installations¹Energy statistics of the Czech Republic: https://www.mpo.cz/assets/cz/energetika/statistika/plynna-paliva/2022/1/Zemni-plyn-2010-2020_1.pdf . Data on yearly new installations provides some insight into the age distribution of gas appliances. 

Increase in Condensing Gas Boilers: The stock of gas boilers in family houses was approximately 923,153 in 2019, with 24.2% being condensing boilers. In apartment buildings, there were 139,839 gas boilers, of which 30.8% were condensing boilers. The proportion of homes with condensing gas boilers increased from 18.2% in 2017 to 25.0% in 2019¹Statistics about residential heating in the Czech Republic: https://www.mpo.cz/assets/cz/energetika/statistika/plynna-paliva/2020/5/Plynove-kotle_publikace_2019_final.pdf  .

No Gas Boiler Bans Currently in Place: There are no local, regional, or national bans on gas boilers in the Czech Republic. Discussions about a full ban on gas boilers are primarily related to EU regulations. 

Changes in Subsidies and Regulations: In response to the conflict in Ukraine, the Ministry of Environment modified subsidy conditions for new gas boilers and heat pumps, ending support for new gas boilers and increasing support for heat pumps in the “Nová Zelená Úsporám” investment grant programme¹Webpage about the programme: https://novazelenausporam.cz/podpora-plynu-konci-i-v-nove-zelene-usporam/ . However, operational support, in the form of a “green bonus“, is still provided to larger combined heat and power (CHP) units. The government also postponed a previously planned ban on old coal boilers by two years¹¹. 

Price Dynamics and Incentive Measures: The price of natural gas for low-consuming households and businesses has nearly doubled between 2007 and 2019¹Government statistics about energy prices: https://www.mpo.cz/assets/cz/energetika/statistika/plynna-paliva/2020/5/Plynove-kotle_publikace_2019_final.pdf. Discussions have taken place regarding price-based measures like energy taxation and carbon taxation to incentivize efficient energy use. Emission taxation of households and fuel taxation within residential buildings are planned measures.

Composition of Housing Stock: The Czech Republic has a total of 2.35 million residential buildings¹Statistics on buildings in the Czech Republic: https://www.scitani.cz/results  ¹³. 

Energy Efficiency Standards for New Buildings: Previous energy efficiency standards in the Czech Republic were less ambitious compared to Commission benchmarks¹ Study on national building standards: https://www.bpie.eu/publication/nearly-zero-a-review-of-eu-member-state-implementation-of-new-build-requirements/ . New buildings constructed today are only about 10-20% more efficient than older houses. However, stricter rules were implemented in January 2022 to align with the revised Energy Performance of Buildings Directive (EPBD) requirements for Nearly Zero Energy Buildings (NZEB).

Financial Support for Residential Building Improvements: The Czech Republic offers various financial support measures to enhance the energy efficiency of residential buildings. The New Green Saving programme provides subsidies for thermal insulation, window and door replacements, with support levels based on the level of insulation¹Government info website: https://novazelenausporam.cz/ . The Panel 2013+ programme offers soft loans for energy demand reduction in multi-family buildings²Government info website: https://sfpi.cz/program-panel-2013/. 

Renovation of Public Buildings: Public buildings account for a 19,2 % of non-residential buildings and 28,7% of their floor area¹Government report: https://energy.ec.europa.eu/system/files/2020-10/cz_2020_ltrs_official_translation_en_0.pdf  . Investment grants are the main form of support for renovating public buildings, with funding provided through the environment Operational Programme and the ENERGov programme. However, state-owned buildings face barriers in developing Energy Performance Contracting (EPC) projects due to budgetary and accounting restrictions. 

Transition to Wider Financial Instruments: The Czech Long-term renovation strategy aims to shift from relying solely on investment grants to utilizing a broader range of financial instruments. This includes promoting energy performance contracting, supporting technical assistance for EPC projects, and facilitating public tender processes for EPC projects. 

Heat Pump Sales and Market Share: In 2022, Heat pump sales in the Czech Republic doubled in comparison with 2021 with more than 60000 units being sold¹Overview over heat pump sales in Europe: https://www.raponline.org/blog/how-energy-crisis-boosting-heat-pumps-europe/. Air-to-water heat pumps dominate the market, accounting for 96% of sales, while ground-source heat pumps have seen a decline in market share ²Article about heat pump sales in the Czech Republic: https://vytapeni.tzb-info.cz/tepelna-cerpadla/25042-tepelna-cerpadla-prodeje-v-roce-2022-scenare-do-2040-a-ne-dostatek-elektriny. 

Heat Pump Market Comparison: In relative terms, heat pump sales per 1000 households in the Czech Republic are lower than in Italy and Poland but higher than in Hungary¹Press release by the EHPA: https://www.ehpa.org/press_releases/market-report-2023/ . 

Financial Support Programs: Various investment support programmes are available for heat pumps in the Czech Republic. The Nová zelená úsporám programme provides subsidies for transitioning to heat pumps, while the Kotlíkové dotace programme targets low-income households¹Article about heat pumps in the Czech Republic: https://www.elektrina.cz/tepelna-cerpadla-pro-vytapeni-odbornik-radi. The Čistá energie Praha programme offers subsidies to improve air quality in the capital region ²Communication by the local government of Prague: https://www.praha.eu/jnp/cz/o_meste/finance/dotace_a_granty/mestske_granty/zivotni_prostredi_a_energetika/index.html . 

Electricity Tariffs and Price Dynamics: Specific heat pump tariffs are applied via reduced network charges to support heat pump installations¹Information by one electricity supplier: https://www.cez.cz/edee/content/file/produkty-a-sluzby/obcane-a-domacnosti/elektrina-2022/moo/cez_cenik_elektrina_elektrina_1_rok_v_akci_moo_cezdi_18_5_2022_web.pdf. However, support for heat pumps is primarily provided through investment subsidies rather than favorable electricity tariffs.  

Manufacturing and Installer Training: Manufacturers like Panasonic¹Newspaper article: https://www.coolingpost.com/world-news/panasonic-begins-european-production/  and Daikin ²https://www.daikinczech.cz/en_us/index/o-dicz/dicz-plzen.html  have production facilities for heat pumps in the Czech Republic. However, there is no specific curriculum for heat pump installers, and obtaining the necessary certifications and licenses requires training and work experience. Concerns have been raised about new entrants in the heat pump business offering low prices and lacking experience. 

District Heating Market Overview: District heating serves 41% of households and a significant portion of industrial heat demand in the Czech Republic. Around 70% of buildings in cities are connected to district heating networks, with potential for further expansion. However, decreasing heat demand is expected due to structural changes and energy efficiency investments¹ Report on district heating in the Czech Republic: https://keepwarmeurope.eu/countries-in-focus/czech-republic/english/. 

Energy Mix and Fuel Sources: In 2022, the district heating energy mix consisted of 47% coal, 20% natural gas, 15% biomass and 5% waste heat ¹Report on heating in the Czech Republic: https://www.eru.cz/rocni-zprava-o-provozu-teplarenskych-soustav-cr-za-rok-2022. The majority of heat production (75%) occurs in Combined Heat and Power (CHP) plants, with brown coal being the dominant fuel for these plants. For plants with separate generation of heat, natural gas is primarily used ²Report on district heating in the Czech Republic: https://keepwarmeurope.eu/countries-in-focus/czech-republic/english/ 

Competitive Market and Future Competition: District heating in the Czech Republic operates in a regulated competitive market. Traditionally, it has competed with natural gas, but it may increasingly face competition from decentralized renewable heating systems, particularly heat pumps. 

Fossil-Fuel Dominated Strategy and Modernization Needs: The Czech government’s strategy involves replacing coal with natural gas in the medium to long term, which raises the risk of carbon lock-in. Government spending on district heating has largely supported fossil-fuel systems. Significant modernization is required in district heating systems, particularly the retrofitting of inefficient steam networks with modern hot water systems. 

Ownership, Pricing, and Support: District heating systems in the Czech Republic have a mix of ownership structures, with municipal companies being predominant¹Presentation about district heating in Central and Eastern Europe: https://keepwarmeurope.eu/fileadmin/user_upload/Resources/Promotional_materials/KeepWarm_DHS_Showroom_EN.pdf. Heat prices are regulated by the energy regulatory authority, which issues pricing guidance annually² Annual Report about Heating in the Czech Republic: https://www.eru.cz/sites/default/files/obsah/prilohy/erv062021_0.pdf  . Government support programmes exist for renewable heating in district heating, but there is a lack of subsidies for consumer connections and green financing. The industry faces concerns over the distortion caused by the EU ETS, which applies a carbon price to large CHP and district heating plants but not to decentralized renewable heating installations. 

Import dependency and potential for domestic gas production: Greece relied entirely on imports for fossil gas in the last years due to very low domestic production. Anticipated offshore gas discoveries after 2030 may increase domestic production, while current infrastructure allows for low dependence on Russia (18.94%) as a supplier¹ Bruegel analysis of European gas supply: https://www.bruegel.org/blog-post/preparing-first-winter-without-russian-gas. 

Gas consumption: In 2021, Greece’s fossil gas consumption was 63 TWh, accounting for 25.3% of the total fuel mix, similar to the EU-average (23.2%). However, per capita gas consumption was below the EU-average, at 6.1 MWh compared to 7.6 MWh. 

Fossil gas usage in buildings: Fossil gas only represents 12% of final energy consumption in buildings, having a relatively small role (16.7%) in household space and water heating in Greece. By contrast, heating oil holds a higher share (37%), well above the EU-average (15%). Additionally, solar thermal contributes significantly (10%) to space and water heating, surpassing the EU-average (1%). 

District heating and fossil gas consumption: District heating plays a minor role (2%) in providing space and water heating in Greece, with fossil gas accounting for only 10% of the supply. Fossil gas consumption for heat supply totalled 63 GWh in 2020, which is mainly sourced from nearby lignite power plants in the Northern region. As lignite plants are phased out though, fully by 2028, the current trend is to replace them by gas-fired dedicated plants. 

Public sector energy reduction measures: The Greek government introduced measures to reduce energy consumption in the public sector by 10% in 2022 and 30% by 2030. Actions include optimizing air conditioning use, installing window blinds, and employing energy officers to ensure lights and appliances are off after work hours. A €640 million program to upgrade state buildings for efficiency also began in July. 

Limited efforts for gas savings in non-public sector buildings: Outside the public sector, there are no systematic efforts to promote gas savings through targeted behavioural measures or low-cost energy savings investments beyond a list of 23 recommendations by the government¹ List of government recommendations: https://ypen.gov.gr/23-tropoi-exoikonomisis-energeias/ A €286 million program (including 3rd phase² Government communication: https://allazosyskevi.gov.gr/wp-content/uploads/2022/12/3%CE%B7-%CF%84%CF%81%CE%BF%CF%80%CE%BF%CF%80%CE%BF%CE%AF%CE%B7%CF%83%CE%B7-%CE%A5%CE%91-%CE%A0%CF%81%CE%BF%CE%B3%CF%81%CE%AC%CE%BC%CE%BC%CE%B1%CF%84%CE%BF%CF%82-%CE%91%CE%9D%CE%91%CE%9A%CE%A5%CE%9A%CE%9B%CE%A9%CE%9D%CE%A9-%CE%91%CE%9B%CE%9B%CE%91%CE%96%CE%A9-%CE%A3%CE%A5%CE%A3%CE%9A%CE%95%CE%A5%CE%97-final.pdf ) subsidizes the replacement of inefficient appliances such as refrigerators, freezers and A/C units. However, none of these appliances is directly using fossil gas. No programme for identifying the least efficient buildings or heating appliances for gas savings measures has been identified. 

No direct energy price interventions: The Greek government’s strategy during the energy crisis focuses on providing direct support to citizens rather than restricting retail prices or reducing VAT. Subsidies were offered through a scaled subsidy program, covering part of the electricity price increase based on consumption¹ European Parliament (2022): Data collection on energy saving measures in EU Member States – Synthetic presentation of the results and underlying data-base. In October, these subsidies were accompanied by an additional subsidy for households reducing their demand by at least 15%. The subsidies were provided to households and companies from September 2021 to July 2022, from September 2022 to October 2022, and in April 2023. According to IEA estimates, the government spent 8,37 billion euros since September 2021 related to energy affordability² IEA tracker on government subsidies: https://www.iea.org/data-and-statistics/data-tools/government-energy-spending-tracker-policy-database. 

Relief package and pensions increase: To alleviate the impact of inflation and the energy crisis, the Government announced a €5.5 billion relief package, including an increase in pensions and minimum wage. The package includes one-time handouts, heating subsidies, and support for housing. 

Proposal for EU’s Electricity Market Target Model: The Greek Government proposed amending the EU’s Electricity Market Target Model to separate renewables and fossil fuel components, generating significant public attention. 

Prohibition on liquid oil boilers: The Greek Climate law prohibits the sale and installation of liquid oil boilers after January 1, 2025. The sale of liquid oil for heating is allowed only if it includes at least 30% renewable energy sources (RES) fuel. 

No current discussions on gas boiler ban: There are no ongoing discussions regarding bans on the installation of gas boilers in new or existing buildings. 

Investment support for fossil gas boilers: Investment support is still (December 2022¹ Ministerial Decision. ΥΠΕΝ/ΕΣΠΑΕΝ/134586/2181 – Official Journal Β 6615/22.12.2022 ) provided for fossil gas boilers for individual dwellings and multi-dwelling buildings. Various regions, including Greater Athens, Thessaloniki, and the region of Larissa, offer incentives reaching up to €11,000 to €18,000 for multi-dwelling buildings with a central heating system. Additional support is available for families in need. 

Absence of price-based measures for fossil gas: No price-based measures, such as energy taxation, carbon taxation, or network charges, are currently applied to fossil gas in Greece with the specific goal of reducing fossil gas consumption. Taxes on fossil gas, like other energy carriers, are primarily aimed at generating revenue. 

Subsidies and discounts for fossil gas customers: In response to the energy crisis, the Greek government implemented a customer price reduction of 20 euros/MWh between September 2021 and May 2022 increasing to 40 euros/MWh only in April 2022, while offering another reduction of 90 euros/MWh in October 2022. The main wholesale fossil gas provider, DEPA, offered an additional discount of 20 Euros/MWh between September 2021 and April 2022¹ IEA tracker on government subsidies: https://www.iea.org/data-and-statistics/data-tools/government-energy-spending-tracker-policy-database. Subsidies for residential and tertiary customers amounted to €63 million and €132 million, respectively, in March 2022, and increased to €89 million and €313 million, respectively, in April 2022. Subsidies ended in February 2023.  

Building stock composition and energy intensity: The Greek building stock consists of approximately 4.6 million residential buildings (96%) and 221 thousand non-residential buildings (4%)¹ Long-term renovation strategy: https://energy.ec.europa.eu/system/files/2021-08/el_2020_ltrs_en_version_0.pdf Single-family homes are more energy-intensive than multi-family homes, especially in climatic zones C and D, where the potential for energy savings is significant. 

Energy Performance Certificates (EPCs): Greek Energy Performance Certificates provide valuable data on building performance. Between 2011 and 2021, 2,18 million EPCs were issued¹ Report on the greek Building stock: https://bpes.ypeka.gr/wp-content/uploads/2022_06_30_E%CE%A4%CE%97%CE%A3%CE%99%CE%91_%CE%95%CE%9A%CE%98%CE%95%CE%A3%CE%97_%CE%A3%CE%A4%CE%91%CE%A4%CE%99%CE%A3%CE%A4%CE%99%CE%9A%CE%A9%CE%9D_%CE%91%CE%A0%CE%9F%CE%A4%CE%95%CE%9B%CE%95%CE%A3%CE%9C%CE%91%CE%A4%CE%A9%CE%9D.pdf

, with most pertaining to residential dwellings (81,73%). Many buildings (61,98%) are classified in categories E and G, while newly constructed or majorly renovated buildings mostly fall under categories A and B. 

Incentives for EPCs: To raise awareness of EPCs, financial incentives linked to their issuance are being contemplated, but concrete proposals are yet to be introduced as of October 2022. 

Nearly-Zero Energy Buildings and energy upgrading: From 2021, new buildings must meet the Nearly-Zero Energy Buildings standard (Class A or A+). Licenses for deep renovations of existing buildings must include energy upgrading to class B+ or above, and new buildings since 2013 must utilize renewable energy sources for 60% of domestic hot water. 

Project “Electra” and energy conservation in public buildings: The government’s “Electra” project aims to achieve 30% energy savings by 2030 in 212,000 public buildings.¹ Programme description: https://ypen.gov.gr/energeia/energeiaki-exoikonomisi/metra-politikis/programma/

Renewable heat production from heat pumps: Greece reported a provisional production of 440 ktoe of renewable heating and cooling from heat pumps in 2021, representing 6,92% of gross final energy consumptionin buildings. Greece leads in relative terms among the deep dive countries in Eurostat statistics. However, these figures include cooling. 

Support for heat pumps: While there are no specific investment support programs for heat pump deployment, general building renovation programs and a new equipment replacement program (offering up to 50% rebate) starting in July 2022 both support heat pumps. 

Energy pricing reforms: The government has not introduced energy pricing reforms that would reduce the competitiveness of alternative technologies, such as carbon pricing. 

Special tariff for heat pump owners: The largest electricity provider, PPC, implemented a special tariff for heat pump owners, offering differentiated rates for daytime (0.235€/kWh) and nighttime (0.18€/kWh) electricity consumption. 

Training and qualification schemes: The Build up skills upswing initiative aimed at developing large-scale training and qualification schemes for heating appliance installers, resulting in the qualification and certification of professionals, as well as the training of new trainers¹ EHI study on heat pump installers: https://ehi.eu/heating-installers-delivering-the-energy-transition/. 

Electricity-to gas price ratio: In the wake of the war in Ukraine, both gas and electricity prices drastically increased in Greece. According to Eurostat data, average (non-heat pump tariff) retail electricity prices for households increased even more strongly than fossil gas prices increasing the electricity to gas price ratio from 1,84 in the second half of 2021 to 2,95 in the second half of 2022.¹ Gas prices: https://ec.europa.eu/eurostat/databrowser/view/NRG_PC_202__custom_6910948/default/table?lang=en; Electricity prices: Electricity prices: https://ec.europa.eu/eurostat/databrowser/view/NRG_PC_204__custom_6910957/default/table?lang=en    

This represents a relative worsening of the competitiveness of heat pumps relative to fossil gas for heating.  

Contribution to energy consumption: District heating covers a little less than 1% (44.8 ktoe in 2021) of household final energy consumption in Greece, falling behind other heating sources like oil, solid biomass, and fossil gas, which are more widely used. 

Current District Heating Networks: Greece has five district heating networks, four of which are municipally owned and one private. The municipally owned networks were financed by the Public Power Corporation as a benefit for forced ex-appropriation of agricultural land mined for lignite. Plans are being developed to replace the lignite supply by 31 Dec 2028. 

Lack of Systematic Efforts for Thermal Renewables: Currently, no systematic efforts exist to accelerate the deployment of thermal renewables for district heating, and no dedicated funding is provided for decarbonization plans for district heating and cooling. 

Financial Support and Regulation: The Greek government has provided financial support to municipality-owned networks through EU funds and state investment programs. No specific support programs directly target efficiency improvements in district heating, except preferential tariffs for electricity generated in high-efficiency CHP units. 

Pricing and Comparison: The largest district heating installation in Greece charges customers €52.64/MWhth plus 6% VAT, while the cost of heating oil is approximately €165/MWhth, including a subsidy, assuming 85% efficiency¹ Overview on energy tariffs: https://www.deyakozanis.gr/wp-content/uploads/2023/02/Timologia2023.pdf. 

Gasification strategy: Hungarian governments have prioritized the gasification of the heating sector for several decades, resulting in a significant increase in fossil gas connections. By 2020, 90% of Hungarian settlements are connected to the gas distribution network, leading to high dependency on fossil gas for heating. 

Dominance of fossil gas: Regulated retail prices and supportive regulatory frameworks have established fossil gas as the dominant energy source for heating in Hungary. This has contributed to Hungary having one of the most gas-dependent heating sectors in the EU. 

Residential gas consumption: Fossil gas accounts for approximately half of the energy consumption in Hungarian households and services. It is primarily used for space and water heating, with an estimated 76% of households relying on fossil gas for heating purposes. 

District heating and gas: Around 8% of energy consumption in households and services is attributed to district heating, with approximately 70% of district heating supply currently coming from fossil gas plants. While renewable energy has made progress in this sector, it has not fully offset the increased reliance on fossil gas since 1990. 

Transition challenges: The high dependency on fossil gas in Hungary’s heating sector poses challenges for decarbonization efforts. Transitioning to alternative, renewable energy sources and reducing gas consumption will be crucial for achieving decarbonization goals and reducing greenhouse gas emissions.

No compulsory measures on households: Hungary has not implemented any mandatory energy savings measures for households or non-residential buildings in response to the energy crisis. There are also no compulsory measures on the efficient operation of gas boilers although in many cases energy savings of 15-20% could be achieved by technical improvements alone ¹Article about potential for energy savings: https://mehi.hu/hirek/drasztikus-rezsicsokkentes-a-lathataron-igy-fuggetlenedhet-minden-magyar-csalad-a-gaztol/. 

State agencies reduction target: The Hungarian government has set a 25 percent reduction target for gas consumption at state agencies and state-owned companies, aiming to lead by example in energy efficiency¹ Article about energy savings targets in the public sector: https://mehi.hu/hirek/drasztikus-rezsicsokkentes-a-lathataron-igy-fuggetlenedhet-minden-magyar-csalad-a-gaztol/. 

Private sector initiatives: Some private sector initiatives, like E.On’s campaign, are promoting energy savings in the community through various measures. 

Green Home programme: Hungary’s Green Home Program offers loans to encourage gas savings through low-cost energy efficiency investments in buildings, but the current budget for the program has been depleted. 

Change in energy price regulations: Due to capped prices, there was no market incentives for households to reduce gas and electricity consumption in the last decade. The Hungarian government implemented changes in July 2022, requiring households to pay market prices (about seven-fold higher than regulated price for gas and two-times higher for electricity) for gas and electricity consumption above average consumption, prompting public attention to energy savings and building renovations. Short-term effect of the price increase was considerable, as the weather-corrected gas consumption of the households decreased by 17%¹ Report on energy prices in Hungary: https://mekh.hu/download/5/51/51000/piacmonitoring_gaz_2023_05.pdf.   

Dominance of gas boilers: Gas boilers make up almost 70% of individual heating systems in Hungary, with a significant portion operating past their technical lifetime. 

No bans or phase-out: Hungary has not implemented any bans or plans to phase out gas-based heating technologies in buildings. 

Indirect support for gas consumers: Consumers benefit from very low regulated retail gas prices, hindering incentives for investing in efficient and clean heating technologies. 

Recent price reforms: In August 2022, Hungary reformed gas and electricity tariffs, introducing block tariffs with higher prices for consumption above certain thresholds, providing financial incentives for energy savings. 

Investment support for renovations: The general renovation support scheme can be utilized for fossil (gas) heating renovations, but this will expire in December 2022. 

Building stock overview: Hungary’s building stock comprises approximately 2.7 million buildings, with 96% being detached houses, 3% traditional apartment blocks, and 1% industrialized apartment blocks. There are about 4.4 million dwellings, of which 91% are owner-occupied¹ Assessment of district heating in Hungary: https://energy.ec.europa.eu/system/files/2022-01/HU%20CA%202020%20en.pdf . 

Low renovation rate: The current renovation rate for residential buildings is estimated at only 1% per year, highlighting the need to improve energy efficiency. 

Energy savings potential: Renovating residential and public buildings to cost-optimal levels could save 16% of total final energy, with public buildings offering a shorter payback time for energy savings investments. 

Subsidy schemes for single-family buildings: From 2021 to 2022, families with children could apply for the Home Renovations Programme offering a 50% subsidy up to 3 million HUF (8000 euros) for all kinds of renovations. Although the programme was not directly linked to energy efficiency improvements, many households used it to change the heating system or insulate their homes. However, no new programme was introduced after the Home Renovations Programme expired.  

Challenges in multi-family buildings: Multi-family buildings built with traditional technology are mostly in worse condition than those built with industrialized technology. For both, there is currently no subsidy programme available for energy-efficient renovations. 

Energy efficiency strategies: Hungary plans to introduce the Energy Efficiency Obligation Scheme to promote cost-effective investments by obligated parties and achieve final energy savings targets. Online platforms like RenoPont¹ The online platform can be accessed via www.renopont.hu (only Hungarian). aim to provide information and support for energy efficiency renovations. 

Low heat pump adoption: Heat pump sales in Hungary have increased in recent years, but the stock remains relatively low compared to neighbouring countries. Hungary had only 1.8 heat pumps per 1000 households in 2021, lagging behind countries like Czech Republic, Poland, and Slovakia. 

Ambitious target: Hungary’s Long Term Renovation Strategy aims to install 100,000 heat pumps by 2030¹ See European Commission (2021): COMMISSION STAFF WORKING DOCUMENT Analysis of the national long-term renovation strategies., representing a five-fold increase from 2020 levels. This goal seeks to accelerate heat pump adoption and reduce greenhouse gas emissions. 

Past support programmes: Investment support for heat pumps was provided through the Green Loan Program, offering discounted interest rates for energy-efficient homes. However, the programme is currently exhausted¹ Notification about end of the programme: https://www.mnb.hu/zold-otthon and support for heat pumps in renovations is limited to companies. 

Operational expenses: Heat pump owners benefit from a lower H/Geo tariff, making electricity prices more competitive compared to gas. While electricity is relatively inexpensive in Hungary, the cost of energy efficiency and fuel switching may still be a concern for some households. Moreover, low gas prices offer few incentives for Hungarian households for switching to a heat pump.  

Market limitations: Hungary faces challenges in achieving its NECP and EU targets due to installer capacity and workforce availability. Skilled enterprises and specialized workers are needed to handle refrigerants and carry out installations. The dominance of certain manufacturers with their own installer networks also impacts the market dynamics. However, opportunities exist for local heat pump manufacturers like Geowatt to contribute to the country’s heat pump adoption efforts. 

District heating overview: In 2019, district heating supplied a significant portion of heat to residential buildings (48%), industry (34%), and non-residential buildings (17%)¹Assessment of district heating in Hungary: https://energy.ec.europa.eu/system/files/2022-01/HU%20CA%202020%20en.pdf . In 2020, over 660k households and nearly 20k non-household customers were served by 217 district heating systems, primarily fuelled by fossil gas (70%), with some contribution from renewables like biomass (12%) and geothermal (11%)² Official statistics about district heating in Hungary: https://tavho.org/tudaskozpont/statisztika. 

Aging networks and negative public image: Most existing district heating networks were established in the 70s and 80s, and expansion has been limited since then. Despite modernization efforts, district heating still suffers from a negative public image associated with the Soviet era. High costs compared to fossil gas in the past led to disconnection of many houses, resulting in technical and economic challenges for the networks. 

Support programmes: Hungary provides Capital Expenditure (CapEx) support for district heating systems financed by EU funds and operational support to suppliers to compensate for losses due to price regulation. However, there are no municipal heat plans or regulatory obligations for municipalities to prepare such plans, and no dedicated funding for local or regional governments to support local heating and cooling plans. 

Renewable heat targets: Hungary aims for an ambitious target of achieving 67% renewables in district heat generation by 2030, compared to the current share of approximately 28%. The country has developed a Green District Heating Programme to support the construction of new renewable heat generation capacities, focusing on geothermal, sustainable biomass, and waste heat projects. 

Regulatory challenges: The district heating sector faces barriers due to Hungary’s current price regulation system, where low and untransparent regulated production prices hinder the attractiveness of investments in renewable heating generation. Individual metering¹ Article about government measures: https://dailynewshungary.com/state-institutions-companies-ordered-to-cut-gas-consumption-by-25-pc/ and smart cost-sharing initiatives are being introduced to improve energy consumption awareness and encourage efficient energy use² Article about government measures: https://ceenergynews.com/climate/hungarian-government-supports-the-modernisation-of-household-heating-systems-to-increase-energy-efficiency/. 

Italy’s high gas consumption and dependency: In 2021, Italy’s gas demand was 831 TWh, representing 40.9% of the total fuel mix, with a per capita consumption of 14.1 MWh, one of the highest in Europe¹ National Energy Authority: Yearly Report: https://www.arera.it/allegati/relaz_ann/22/RA22_volume_1.pdf. The country imports most of its fossil gas supply, with 40% coming from Russia in 2021² Government statistics about gas supply: https://dgsaie.mise.gov.it/bilancio-gas-naturale. Since then, Italy has mainly replaced gas imports from Russia with imports from Northern Africa and Azerbaijan aiming at completely replacing imports from Russia by the end of 2023³ Article on Italy replacing Russian gas supply: https://www.euractiv.com/section/politics/news/italy-free-from-russian-gas-by-years-end-says-minister/. 

Dominant role of fossil gas in buildings: Nearly 40% of total gas consumption is used in buildings¹ See IEA report on Italy (https://www.iea.org/reports/italy-2023), p.151, and in 2021, fossil gas accounted for 59% of final energy consumption for space and water heating in households² Eurostat (nrg_d_hhq). 

Limited impact of district heating: District heating plays a minor role in providing space and water heating in Italy¹ See IEA report, p.65, but the share of fossil gas in the supply of heat to district heating is high at 65%² See IEA data on Italy: https://www.iea.org/countries/italy. Italy has the highest fossil gas consumption in gross heat production for district heating among the countries observed. 

Extensive gas distribution network: Italy’s gas distribution network spans over 268,000 km, with Italgas managing nearly 30% of it. The network saw 2,180 km of new pipelines added in 2021 compared to 2020, with the majority located in the northern part of the country¹ National Energy Authority: Yearly Report: https://www.arera.it/allegati/relaz_ann/22/RA22_volume_1.pdf. 

Transition away from fossil gas: According to TSOs’ development plans, Italy’s fossil gas demand is projected to decrease significantly, reaching 620 TWh by 2030 and 375-393 TWh by 2040¹ Scenario for Gas demand in Italy: https://download.terna.it/terna/Documento_Descrizione_Scenari_2022_8da74044f6ee28d.pdf. The draft of the updated NECP (National Energy and Climate Plan), sent by the Government to the European Commission in July 2023, intends to achieve 496 TWh by 2030 and 432 TWh by 2040² National Energy and Climate Plan: https://www.mase.gov.it/sites/default/files/PNIEC_2023.pdf . The Long-Term Strategy aims for fossil gas to have only a marginal role in the total fuel mix by 2030, emphasizing a transition away from fossil fuels.  

Government measures for public buildings: The Italian government has introduced measures aimed at limiting heating to 19°C and cooling to 27°C in public buildings during winter and summer, respectively, to promote energy efficiency. 

ENEA’s energy efficiency campaign: The Italian National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA) launched the “Italia in Classe A” campaign¹ Campaign website: https://italiainclassea.enea.it/ to stimulate energy efficiency in the tertiary and industrial sectors and promote conscious energy behavior in residential areas. 

Superbonus: The Superbonus initiative was introduced in 2020 originally covering 110% of the renovation expenses as a tax deduction which could also directly be reduced on the invoice. However, the superbonus was restricted to 90% of the costs in 2023. Moreover, an invoice reduction is only possible for social housing which makes it harder for low-income households to cover the upfront costs of renovation¹ Blog on the Superbonus scheme: https://n26.com/en-it/blog/superbonus-italy.   

GREENROAD project for energy efficiency: ENEA is leading the GREENROAD project¹ Project website: https://www.greenroadproject.it/?page_id=505, aiming at establishing national roundtables and territorial focus groups to facilitate dialogue among stakeholders and decision-makers. The project aims to identify effective energy efficiency measures and improve the bankability of energy efficiency projects. 

Electricity and gas bill relief: To reduce the impacts of electricity and gas bills on consumers, the Italian government has introduced various measures, such as reducing system charges in the electricity bill, extending access to the social bonus for low incomes, and implementing tax credits on extra energy costs for companies. Moreover, the VAT for fossil gas has been reduced from 11-22% to 5%. 

Lack of bans or phaseout plans: Italy currently has no bans on gas boiler installations and no explicit plans for phasing out fossil fuels in heating systems, despite some local actions targeting oil boilers¹Article on local actions in Milan: Milano Today. (2020). Milano, stop caldaie a gasolio anticipato ad autunno 2022: è ufficiale. Milano Today. https://www.milanotoday.it/attualita/caldaiegasolio-stop-2022.html. 

Substantial investment support for gas heating: Italy provides up to €30,000 in direct investment support for gas-based heating technologies through schemes like “Superbonus,” “Ecobonus,” and “Renovation bonus.” Additionally, a reduced VAT rate of 10% applies to some gas condensing boiler installations¹ See Cool Products (2020): Analysis of existing incentives in Europe for heating powered by fossil fuels and renewable sources. https://www.coolproducts.eu/wp-content/uploads/2020/12/Analysis-of-Fossil-Fuel-Incentives-in-Europe_FINAL_.pdf. 

Lack of price-based incentives: There are no price-based measures, such as energy or carbon taxation, to incentivize a reduction in fossil gas consumption. The reduced VAT rate on fossil gas for domestic purposes is considered an environmentally harmful subsidy. 

Prevalence of fossil gas boilers: In 2017, fossil gas boilers accounted for nearly 72% of the installed capacity of individual heating systems in Italy. A significant portion of these boilers is quite old, with many operating beyond their technical lifetime ¹Description of the heat supply of EU member states, Chapter on Italy, p.9: https://op.europa.eu/en/publication-detail/-/publication/f55d11b9-fd9e-11ec-b94a-01aa75ed71a1/language-en/format-PDF/source-search

Dominance of gas condensing boilers: Gas condensing technology is the most popular choice in Italy due to the extensive gas network and affordability. In 2019, 85% of the 870,000 new heating appliances installed in Italian buildings were gas-condensing boilers¹ Heating market report by the European Heating Industry (2021): https://ehi.eu/wp-content/uploads/2022/09/EHI-2021-Heating-Market-Report.pdf . However, new installations are still limited compared to the large stock of old and inefficient heaters, which could take around 15 years to fully modernize. 

Building stock overview: Italy’s building stock consists of approximately 12.4 million residential buildings with 32 million dwellings (22% unoccupied) and 1.58 million non-residential buildings. More than 65% of the buildings are over 45 years old, with regional concentration in northern Italy¹ Gevorgian A., Pezzutto S., Zambotti S., Croce S., Filippi Oberegger U., Lollini R., Kranzl L., Müller A., European Building Stock Analysis, Bolzano, Italy: Eurac Research, 2021, ISBN 978-88-98857-68-5. 

Building types and climate zones: Multifamily houses cover 54% of the residential sector, while single-family houses occupy 29%, and apartment blocks account for 17%. Trade buildings dominate the service sector with an 82% share. Italy’s climate varies from subtropical in the south to temperate in the north, leading to diverse energy demand and solar radiation patterns¹ National Renovation Strategy: https://energy.ec.europa.eu/system/files/2021-12/2020_ltrs_italy_-_en.pdf. 

Energy consumption and efficiency: The average primary energy demand for single-family and multi-family dwellings is 180 and 160 kWh/m2-year, respectively. Most buildings constructed before 1976 are identified as the worst performers. Italy introduced various tax incentives, like the Ecobonus and Superbonus, to promote building renovations and energy efficiency. 

White certificate scheme: Italy uses White Certificates to incentivize energy efficiency improvements in various sectors, including buildings. Electricity and gas distributors must achieve yearly energy-saving targets, and the market sets the price for these tradable instruments. 

Public building renovations: Italy’s efforts to renovate public buildings include programs like Conto Termico 2.0 and PREPAC. Conto Termico supports renewable thermal energy production and energy-efficient renovations by public authorities. PREPAC aims to achieve a 3% annual energy renovation rate for the central public administration. 

Heat pump market in Italy: In 2022, Italy was the second-largest European market for heat pumps, with 513 535 units sold¹ EHPA market data: https://www.ehpa.org/market-report-2023/. The country also leads in hybrid heat pump adoption, indicating their versatility due to both heating and cooling needs² Heating market report by the European Heating Industry (2020): https://ehi.eu/fileadmin/user_upload/user_upload/Heating_Market_Report_2020.pdf. 

Hybrid heat pump incentives: The surge in hybrid heat pump sales can be attributed to fiscal incentives. Gas condensing boilers combined with hydronic heat pumps are the most common hybrid solution promoted by gas boiler manufacturers, seen as a transitional technology for hot water production in buildings with limited thermal storage space.  

Regional differences in heat pump adoption: The deployment of air-to-air heat pumps is more significant in Southern Italy, where cooling needs are more pronounced leading to the estimate that only 9% of the air-to-air heat pumps in Italy are sold as primary heating solutions. Meanwhile, air-to-water heat pumps dominate the Northern market. Over 35% of homes not on the gas grid have lower barriers to heat pump adoption. 

Heat pump policy and incentives: Italy has implemented various financial support programs for heat pumps, including the ‘Conto Termico’¹ Programme description: https://www.gse.it/servizi-per-te/efficienza-energetica/conto-termico, ‘Superbonus² Programme description: https://www.agenziaentrate.gov.it/portale/documents/20143/233439/Guida_Superbonus110__.pdf/49b34dd3-429e-6891-4af4-c0f0b9f2be69‘, ‘Ecobonus’³ Programme description: https://www.agenziaentrate.gov.it/portale/documents/20143/233439/Agevolazioni+fiscali+per+risparmio+energetico+it_Guida_Agevolazioni_Risparmio_Energetico.pdf/364ab72b-b873-c28e-1e75-0ebbf0cdd7a5. ‘Bonus Ristrutturazioni’⁴ Programme description: https://www.agenziaentrate.gov.it/portale/documents/20143/233439/Guida_Ristrutturazioni_edilizie08092019.pdf/3a3c355b-249d-358a-ae69-a22cff87838b, and reduced VAT rates. 

Electricity pricing and heat pump adoption: The government has not introduced energy pricing reforms to support the competitiveness of heat pumps, with the Superbonus scheme providing equal tax deductions for gas boilers and heat pumps. The electricity tariff scheme does not differentiate between consumers with and without heat pumps. 

Grid upgrades and installer requirements: At high heat pump penetration, grid upgrades may be necessary, especially in the South of Italy. Installers and maintenance workers of heat pumps must obtain a “RES certificate”¹ Report by the European Heating Industry on installers: https://ehi.eu/heating-installers-delivering-the-energy-transition/, which requires specific training and qualifications. 

District heating in Italy: Limited Coverage and Declining Usage District heating serves about 5% of the Italian population, mainly in the northern regions, with networks in cities like Torino, Milano, and Brescia. However, its usage has decreased since 2013, with 64% of supplied heat going to residential properties¹ National Renovation Strategy: https://energy.ec.europa.eu/system/files/2021-12/2020_ltrs_italy_-_en.pdf. 

District heating networks and renewable fuels: Italy has over 330 operating district heating networks covering more than 280 urban centers. In 2020, renewable fuels accounted for 25% of heat output, while fossil fuels, predominantly fossil gas, supplied the remaining 75%. The district heating network losses amount to approximately 18% of gross heat supplied¹ Report on district heating and district cooling in Italy in 2020: https://www.gse.it/documenti_site/Documenti%20GSE/Rapporti%20statistici/GSE%20-%20Nota%20Teleriscaldamento%20e%20teleraffrescamento%202022.pdf. 

Support options and funding for district heating: The Italian Long-term Renovation Strategy provides support options such as white certificates for energy savings from high-efficiency cogeneration and installations connected to district heating networks. The government aims to allocate €200 million for district heating projects as part of the Recovery and Resilience Plan, but this falls short of the potential demand. 

Technical and economic potential of district heating: A study by Politecnico of Milan and Politecnico of Turin¹ Link to the study: https://www.camera.it/application/xmanager/projects/leg18/attachments/upload_file_doc_acquisiti/pdfs/000/004/811/Memoria_AIRU_Report_finale_.pdf highlights the significant potential for district heating in Italy, estimating that 114 TWh of heating requirements are technically suitable, of which 38 TWh optimally feasible. Full deployment of this potential could lead to a substantial reduction in CO2 emissions and fossil fuel consumption, but investment needs reach 49.5 billion Euro. 

Barriers to district heating development: Barriers to the full realization of district heating’s potential in Italy include regulatory, economic, and authorization challenges. Strengthening regulations, providing specific incentives, and simplifying authorization processes are needed to facilitate its growth. Without economic support, less than 30% of the identified potential is feasible. Overall, the Italian government’s measures during the energy crisis have focused on mitigating gas price increases, neglecting the needs of district heating customers, and providing limited funding for district heating projects. Addressing the barriers and investing in district heating could significantly contribute to decarbonization and energy efficiency goals¹ Presentation on decarbonising district heating in Italy: https://www.qualenergia.it/wp-content/uploads/2022/03/Convegno-AIRU-29-03-22-presentazione-Elemens.pdf. 

Increasing reliance on gas imports: Poland heavily relies on gas imports, with the share of imports increasing from 63% to 72% between 2010 and 2020, while domestic gas production declined slightly. This import dependency has driven Poland to diversify its gas supply sources¹ See IEA report on Poland, chapter 9: https://www.iea.org/reports/poland-2022. 

Increasing role of gas in energy mix: In 2020, household energy demand was covered by coal (25%), bioenergy (23%), fossil gas (20%), district heating (18%), and electricity (12%)¹ See IEA report, p.55. Although Poland historically depended on coal, the role of gas has been increasing, with gas demand rising steadily from 17.2 bcm to 21.3 bcm between 2010 and 2020. The government projects further growth in gas demand to reach 27.4 bcm to 31.6 bcm by 2030 ²See IEA report, chapter 9.

Gas infrastructure expansion: Poland plans to significantly expand gas infrastructure, including increasing gas import capacity and diversifying gas supply. The Baltic Pipe project, set to bring 10 billion cubic meters of Norwegian gas annually, was  opened in September 2022. Additionally, new pipelines and connections have been added to the gas distribution network, increasing the share of households connected to the network from 69% to 72% between 2019 and 2020¹ See IEA report, chapter 9.

Role of fossil gas in buildings: In 2020, fossil gas consumption in buildings represented about 30% of total gas consumption. However, according to the Long-Term Renovation Strategy, more than half of these households use gas only for cooking, especially in areas not reached by the fossil gas network¹ See Long-term renovation strategy: https://energy.ec.europa.eu/system/files/2022-06/PL%202020%20LTRS%20_%20EN%20version.pdf, p.24. 

Concentrated gas markets: Poland’s gas market is highly concentrated, with limited competition at wholesale and retail levels. PGNiG, the state-owned oil and gas company, holds a dominant position in the gas sector, with subsidiaries involved in production, distribution, and retail supply. The market is still in the process of liberalization¹ See IEA report, chapter 9. 

Urging home insulation and energy savings: The Prime Minister has appealed to Poles to insulate their homes ahead of a challenging heating season due to rising energy prices¹ Article about Prime minster’s appeal: https://notesfrompoland.com/2022/07/14/government-appeals-to-poles-to-insulate-their-homes-ahead-of-difficult-winter/. The government has also proposed a voluntary program to modernize outdoor street lighting² Government proposal: http://gov.pl/premier/premier-oglosil-tarcze-solidarnosciowa-ktora-ma-chronic-polakow-przed-gwaltownymi-wzrostami-cen-energii, while national and local authorities are obliged to reduce electricity consumption by 10% from October 2022. 

Tradable energy efficiency certificates: Poland’s main measure to improve energy efficiency involves tradable energy efficiency certificates (white certificates). Suppliers of energy must achieve annual energy savings of 1.5%, and companies undertaking energy-saving projects can apply for certificates and sell them to energy suppliers to help meet targets. However, the program’s effectiveness has declined since 2017 due to delays in processing applications¹ See IEA report pp.63-64. 

Building Emissions Register: A Central Register of Building Emissions¹ Government website: https://www.gunb.gov.pl/strona/centralna-ewidencja-emisyjnosci-budynkow has been established to create an inventory of heating appliances in Polish homes. Almost 9 million declarations have been received, which could help identify the least efficient heating appliances for targeted interventions. 

Electricity Price Interventions: To tackle the energy crisis, the government has frozen electricity prices for households at 2022 levels (0,69 PLN/kWh; € 0,16/kWh) until the end of 2023. This cap only applies for a consumption of 2000 kWh per household, being increased to 2600 kWh for people with disabilities and large families. To incentivize electricity savings, households reducing their consumption by at least 10% will receive a 10% discount on their electricity bill next year¹IEA desription of measures: https://www.iea.org/policies/16886-solidarity-shield-law-on-emergency-measures-aiming-at-limiting-electricity-price-rise-and-supporting-consumers-in-2023.  

Other measures:  For households, the government has also introduced a gas price cap of 0,2 PLN/kWh (€0,05) without any consumption ceiling which will be valid until the end of the year. Moreover, low-income households will receive an additional VAT refund ranging from 400 PLN to 1500 PLN (€ 90-338) on their gas bills. Households heating with electricity and coal received one-time lump sum subsidies of 1000-1500 PLN (€225-338) and 3000 PLN (€676). Moreover, price caps have also been introduced for district heating where prices cannot increase by more than 40% compared with prices in September 2022¹IEA description: https://www.iea.org/policies/17221-energy-shield-measures-against-high-energy-prices¹³.   

Gas boiler prevalence: Poland aims to phase out fossil fuel-based sources as main energy carriers in building thermal modernization by 2030, but currently, there is no ban on installing gas boilers, and they remain common in single-family buildings. 

Gas boiler numbers: More than 3 million gas-based heating appliances were installed nationwide by September 2022, making up 24% of the heating appliance stock compared to 7 million solid fuel boilers, fireplaces or stoves (55%), 1.4 million electric heating appliances (12%), 390,000 solar collectors (3%) and 260,000 heat pumps (2%). 

Growing number of gas condensing boilers: Gas condensing boilers have seen a rapid increase in stock, doubling from 748,000 to 1,486,000 between 2015 and 2019, accounting for 74% of boiler sales in 2018 and representing the majority of gas boiler sales in 2021¹ Association of the European Heating Industry: Heating Market Report 2021: https://ehi.eu/heating-market-report/heating-market-report-2021/. 

Clean Air Programme and gas subsidies: The Clean Air Programme still provides investment support for gas boilers, and gas accounts for a significant portion (43%) of funding applications, though there has been an increasing role for heat pumps and a decreasing role for gas in recent years as gas boilers accounted only for 22% of applications in Jun e 2022 while heat pumps accounted for 60%. 

Pricing tools and gas consumption: Currently, there are no significant national-level pricing tools to drive a shift away from gas in buildings as the national emissions fee is clearly below the ETS price¹ See IEA report, pp. 41-42. Meanwhile, the government has indirectly supported gas consumption through VAT reductions on energy and regulatory measures to restrict gas prices for consumers, affecting tariff protection for sensitive consumers as well² Government communication on pricing measures: https://www.gov.pl/web/premier/tarcza-antyinflacyjna-20–zdecydowane-dzialania-rzadu-przeciw-skutkom-inflacji. 

Building stock: Poland’s national building stock consists of 14.2 million buildings, 61% residential buildings, 34% private service sector buildings and 5% public buildings. About one-third of residential buildings were built before 1980 and have a final energy demand higher than 200 kWh/m2 per year. More than 1 million buildings (7% of total) were built before 1918 and have a final energy demand higher than 300 kWh/m2 per year¹   See IEA report, p. 55 . 

Renovation support: Poland’s Clean Air Programme offers subsidies of 30%, 60%, or 90% for renovating single-family homes, while multi-family buildings receive a thermomodernization bonus covering up to 21% of costs¹ Information about the programme: https://www.bgk.pl/male-i-srednie-przedsiebiorstwa/modernizacja-i-rewitalizacja/premia-termomodernizacyjna-z-funduszu-termomodernizacji-i-remontow/#c18933. 

Energy performance standards: New buildings in Poland must meet energy performance standards of <70 kWh/m2/year for single-family and <65 kWh/m2/year for multi-family homes, aligning with EU requirements¹ Review of member states’ policies on new builts requirements: https://www.bpie.eu/wp-content/uploads/2021/06/Nearly-zero_EU-Member-State-Review-062021_Final.pdf.pdf . 

Energy Performance Certificates: Buildings require an EPC when sold or rented, providing data on energy performance, fuel consumption, CO2 emissions, and renewable energy share, but EPC registration is still low at approximately 10%.

Energy performance contracts: The government has introduced a programme supporting energy performance contracts between building owners and ESCOs in multifamily and public buildings through grants. To be eligible, renovations must reduce the energy consumption by at least 30%¹ See IEA report, p.56. 

Booming heat pump market: Poland’s heat pump market has experienced remarkable growth in recent, with sales more than doubling in 2022 from 92,650 in 2021 to 207,992¹ EHPA overview on market data: https://www.ehpa.org/market-data/. This increase was mainly driven by a surge in air/water heat pumps² Article on heat pump sales in Poland: https://www.coolingpost.com/world-news/heat-pump-sales-rise-120-in-poland/. 

Subsidies: The Clean Air Programme offers subsidies ranging from 30% to 90% for heat pump installations, making them an attractive option to replace coal heating systems in single-family homes. The “My Heat” programme provides investment support subsidies for new buildings¹ Programme description: https://mojecieplo.gov.pl/. 

Operational costs:  According to estimates by POBE (Polish Energy Efficiency Industry Alliance), operational costs of heat pumps are already lower compared to other heating systems due to the high efficiency of heat pumps. However, government interventions to lower gas prices counteract this trend. 

Regulatory and pricing measures: Local regulations to phase out coal heating systems and uncertainties on the VAT rate heat pump installations impact their competitiveness. Reforms in electricity and gas pricing can also influence heat pump adoption. 

Industry investment and challenges: Heat pump sales growth has led to increased investment by manufacturers, such as Daikin¹ Daikin Press Release: https://www.daikin.eu/en_us/press-releases/daikin-europe-invests-300-million-in-new-polish-heat-pump-heatin.html and Viessmann² Viessmann Press Release: https://renewablesnow.com/news/viessmann-to-invest-eur-200m-in-new-heat-pump-factory-in-poland-791617/, in production sites in Poland. However, a lack of qualified installers and standardization issues could pose barriers to further market expansion³ Article about Polish heat pump market: https://heatpumpingtechnologies.org/poland-a-significant-heat-pump-market-growth-recorded-in-2021/. 

District heating Overview: Poland’s district heating production primarily relies on coal (70%) and co-generation, with 65% of heat production coming from this method. The country possesses the second-largest district heating network length in Europe, totalling 21,701 km. 

Households as main users: Households are the largest consumers of district heating (71% of delivered heat), followed by industry (21%) and the service sector (10%). In 2018, 5.8 million households (40% of total households) were connected to a district heating network. 

Low energy efficiency: In 2018, only about 20% of district heating systems, responsible for 85% of district heating supply, met EU criteria for energy efficiency, highlighting the need for improvements¹ See IEA report, p. 58. 

Government initiatives: The Polish government has introduced programs to support district heating projects, such as the ‘District Heating’ and ‘Energy Plus’ programs, offering grants and loans for modernization, expansion, and renewable energy integration. 

Transition challenges: The shift towards renewable energy in district heating is hampered by limited systematic efforts, with only 10% of heat supplied coming from renewables, primarily solid biomass. Regulatory constraints, declining energy companies, and heat price regulations pose challenges for the decarbonization of district heating in Poland. 

Declining domestic gas production and increased imports: Romania’s gas production has been continuously declining over the past decade, leading to an increased reliance on imports, which accounted for over 20% of total consumption in 2021. With proven reserves expected to be depleted in 10-12 years, alternative import sources, including the Southern Corridor and liquefied fossil gas, may offer limited quantities to meet demand. However, the government is determined to see the gas fields in the Black Sea’s deep waters developed in the next four years which, if successful, would turn the country into a regional gas exporter for more than a decade starting 2028.  

Shifting consumption patterns: Fossil gas consumption in Romania has significantly decreased over the years, partly due to reduced energy consumption and the closure of energy-intensive industrial installations. However, fossil gas still holds a share of about one-third in the country’s energy mix. Consumption in large thermal power plants for electricity and heat production has seen a downward trend, while domestic consumption for heating homes, water, and cooking has increased and represents the largest segment. Fertilizers production, for which fossil gas is the feedstock, continues to have a significant market share, yet the longer-term future of that industry depends on its ability to invest quickly into an alternative, carbon-free technology. 

Distribution and connection challenges: The connection of localities to fossil gas distribution networks remains low, with only 30% of administrative-territorial units connected as of 2019. Efforts to expand the gas network, such as proposed investments in the National Recovery and Resilience Plan, aim to increase access to fossil gas and install new gas boilers in regions currently lacking gas infrastructure. However, this approach poses economic and climate risks. 

Heating fuel usage: Coal and heating oil have marginal use in Romania for heating purposes, mainly limited to specific geographical regions. The dominant fuel for heating in rural areas is firewood, with around 90% of the rural population relying on it. Transitioning this population to fossil gas is a commonly held belief, but the feasibility of developing deep-water fields in the Black Sea and the potential economic and geopolitical implications of widespread gasification should be critically evaluated. 

Challenges of gas production and future outlook: Romania’s gas production has experienced a decline, despite the country being a significant gas producer. Exploitation of deep-water fields in the Black Sea holds potential, but requires years of development, under conditions of geopolitical uncertainty. Future gas production and the transition of rural populations to fossil gas should be carefully considered, considering uncertainties in field development and the potential consequences of heavy reliance on gas for heating and cooling. 

Lack of comprehensive energy savings campaign: The Romanian government has not launched a broad energy savings campaign in response to the energy crisis, resulting in missed opportunities for public engagement and awareness. 

Limited efforts for gas savings: There have been only timid and sporadic recommendations by officials regarding gas savings through behavioural changes and no systematic efforts to promote low-cost energy savings investments in buildings. 

Absence of national building efficiency identification: Romania lacks national-level initiatives to identify the least efficient buildings and heating appliances, hindering targeted energy savings measures. 

Price caps on energy: The Romanian government has implemented price caps on electricity and fossil gas¹ Law 357/December 2022, https://legislatie.just.ro/Public/DetaliiDocumentAfis/262447 for households, which are to be in force until March 2025, although the energy prices have currently returned to values close to the pre-crisis levels.  The price caps represent a disincentive to energy efficiency investments. 

Need for comprehensive measures: To address the decarbonization of buildings in Romania, a comprehensive approach is required, including the implementation of energy savings campaigns, identification of inefficient buildings, promotion of low-cost energy-saving investments, and careful consideration of price interventions to incentivize energy efficiency without hampering technological advancements.

No official ban on fossil gas boilers: There is no national-level ban on fossil gas boilers, but Cluj city hall has prohibited the installation of individual gas boilers in new residential condominiums, while allowing central heating gas boilers for entire buildings. 

Influence of gas industry lobby: The gas industry, led by distribution companies, advocates for the cost advantages of gas boilers compared to heat pumps, although their claims can be misleading. 

Limited support for gas-based technologies: Gas-based technologies, such as gas boilers, do not receive investment or operational support in the building sector, due to their current cost-effectiveness. 

Absence of price-based measures: No price-based measures, such as energy or carbon taxation, are applied to fossil gas to encourage reduced consumption, as such measures are likely to face public resistance and political challenges. 

Price regulations and compensatory payments: The government implemented price caps on household energy prices, resulting in lower electricity and gas bills for consumers. However, compensatory payments from the state to the supply companies to cover the price difference have been insufficient, despite the new regulatory regime. The price caps were set so that fossil gas remained the cheapest energy source – 2-3 times cheaper than electricity, depending on the quantity of electricity consumed in a month. 

Diverse building stock and renovation challenges: Romania’s building stock comprises 5.6 million buildings¹ National long-term renovation strategy of Romania: https://energy.ec.europa.eu/system/files/2021-04/ro_2020_ltrs_en_version_0.pdf , of which 56% were constructed between 1960 and 1990, with limited energy efficiency measures. Limited renovations (0.1% yearly) hinder energy-saving efforts. 

Limited progress in energy efficiency and ownership: Most Romanians live in homeownership (94.7%), but many homes lack minimum standards of comfort, sanitation, and energy performance. Many renovation programs at local level faced corruption charges, reducing public confidence in building renovation measures. 

Need for updated regulations and inventory: Romania updated the law for Energy Performance in Buildings, but the methodology has been approved only in July 2023, with considerable delay, while a national buildings inventory by energy performance criteria is still work in progress. Energy Performance Certificates (EPCs) play a minor role and are perceived more as formal requirements, lacking detailed implementation scenarios¹ Factsheet about the Romanian building stock: http://ibroad-project.eu/wp-content/uploads/2018/01/iBROAD_CountryFactsheet_ROMANIA.pdf. 

New build standards and NZEB goals: Energy efficiency standards for new builds in Romania are less ambitious than EU benchmarks. The Long-Term Renovation Strategy targets NZEBs with primary energy consumption below 50 kWh/m²/year and over 40% RES share. 

Focus on public buildings and ESCOs: Romania aims to refurbish public buildings progressively. The government plans to develop a project pipeline for public building renovations. However, a regulatory framework for Energy Service Companies (ESCOs) is still lacking, limiting their use in major energy renovation projects. Improving EPCs to provide detailed implementation scenarios and incentivize deep energy renovations is essential for guiding building owners and promoting energy-saving measures. The government should allocate finances from the Modernisation Fund for the renovation of buildings in the lowest energy class, which are typically inhabited by vulnerable consumers.  

Limited market and lack of awareness: Romania has the worst picture in the EU heat pump market, with low familiarity and prevalent negative myths about heat pump technology among decision-makers and the public. Lack of statistics and reporting further hampers market understanding. 

NZEB standards and incentives: New buildings and major renovations in Romania must comply with NZEB standards, requiring at least 30% of primary energy consumption to come from local renewable sources. This provides a clear incentive for the adoption of rooftop PV panels and heat pumps. 

Lack of investment support: Currently, there are no investment support programs at the national level for heat pumps in Romania. However, the government has expressed consideration for including heat pumps in upcoming financing instruments. 

Energy pricing reforms: The Romanian government has not introduced specific energy pricing reforms to support the competitiveness of heat pumps, such as reduced VAT, electricity tax rates, or lower network charges. There are no special heat pump tariffs currently in place. 

Price regulations and competitiveness: End-user prices for electricity and fossil gas have been capped for household consumers, with fossil gas being the cheapest option followed by electricity¹ Government communication on price caps: https://legislatie.just.ro/Public/DetaliiDocument/252777. The electricity to gas price ratio is 2-3 to one, depending on the quantity of electricity consumed per month, which is already within the profitability zone of operating a heat pump. The government, though, ought to support the acquisition of heat pumps through CAPEX subsidies.  

Fossil fuel dominance: Romania’s district heat supply is predominantly reliant on fossil fuels, with fossil gas accounting for about 80% and coal for 18% of the heating mix. Renewable and waste heat sources have a small share¹ https://irees.de/2021/10/18/district-heating-and-cooling-trend-interactive-report/. 

Legacy of district heating: The extensive district heating network in Romania dates back to the communist era, with systems established in the 1970s and 1980s. However, the network has significantly declined technically over the years, leaving many boilers and thermal power plants in need of decommissioning¹ Master’s thesis on district heating in Romania: https://irees.de/2021/10/18/district-heating-and-cooling-trend-interactive-report/.

Challenges and modernization: The district heating system serves a considerable number of residents in urban areas, but it suffers from substantial heat losses (35% and more)¹ National report of the Energy Regulatory Authority: https://www.ceer.eu/documents/104400/7517827/C22_Romania_EN/a0d68223-7095-9b34-3888-7795e6ea9049, outdated infrastructure, and dependence on gas-fired cogeneration plants. 

Funding and EU initiatives: Local authorities are eligible to apply for EU funds to refurbish and modernize the heat distribution networks. The government also introduced the Thermalization Programme¹ Programme description: https://www.mdlpa.ro/pages/programultermoficare20062020 to support district heating projects and co-finance investment initiatives. 

Regulation and cost allocation: District heating in Romania is mainly state-owned and operated by public entities, regulated by Law 325/2006 on the public heating service. Prices are set at the local level with cross-subsidization, but there are challenges in cost allocation and ensuring energy efficiency in individual flats¹ Report on district heating and cooling in the European Union: https://op.europa.eu/en/publication-detail/-/publication/30058105-eac0-11ec-a534-01aa75ed71a1/language-en. There is no district cooling implemented so far in Romania. 

Fossil gas consumption: Slovenia heavily relies on fossil gas imports, with total consumption reaching 903 million Sm³ in 2021¹Energy balance for Slovenia (2021): https://www.energetika-portal.si/fileadmin/dokumenti/publikacije/energetska_bilanca/ebrs_2021.pdf . The industrial sector accounts for 61% of consumption, followed by transformations (20.1%), households (14.4%), and other sectors (3.3%). 

Household energy usage: Fossil gas represents only 10% of final energy consumption in Slovenian households, trailing behind biomass (39%), electricity (28%), and heating oil (12%). District heating slightly surpasses fossil gas at 7%. 

Fossil gas in district heating: In district heating systems, fossil gas contributes around one-third (31.48%) of primary energy for heat production. Coal holds the largest share at 47%, while renewables, mainly biomass, account for 17.5%. Waste-to-energy plants, industrial waste heat, and electricity have minimal contributions¹Status report on energy in Slovenia (2021): https://www.agen-rs.si/documents/10926/38704/Poro%C4%8Dilo-o-stanju-na-podro%C4%8Dju-energetike-v-Sloveniji-v-letu-2021/17048023-cfc5-4283-8e48-5fa078ad2ae6 . 

Distribution of fossil gas: Distribution of fossil gas covers most urban areas in Slovenia, except for Primorska. In 2018, there were 13 distribution system operators serving 120,228 household customers, 249 customers in closed distribution systems, and 14,246,596 public utilities. The average household consumption is 9,615 kWh per year¹National Energy and climate plans: ttps://ec.europa.eu/info/energy-climate-change-environment/implementation-eu-countries/energy-and-climate-governance-and-reporting/national-energy-and-climate-plans_en#documents. 

Government measures for energy efficiency in public buildings: The Slovenian government implemented soft measures to reduce energy consumption in public buildings by 10%. These include limiting cooling to 25°C with certain humidity conditions, adjusting dress codes, reducing building operation hours, and setting maximum heating temperatures. Building managers are responsible for implementing energy efficiency measures and investing in renewables, particularly for heating¹ Government communication on the necessary measures in the area of food and energy security: https://www.gov.si/zbirke/projekti-in-programi/ukrepi-za-omilitev-draginje/. However, there might be an implementation deficit with regards to those measures due to the quality of facility management in public buildings. 

Policy efforts for short-term energy savings: The government has various policy efforts to achieve Slovenian Environmental Public Fund (Eco Fund) and regional offices of energy advisors. BORZEN provides online portals and trainings for energy auditors. Additionally, NGOs, electricity suppliers, and web portals have launched campaigns to address the increase in energy prices¹For example: https://www.caszazemljo.si/, http://www.trajnostnaenergija.si/ https://www.energetika-portal.si/, https://eko-portal.si/home. 

Support for low-cost energy savings: Several measures aim to support energy savings investments. The Eco Fund provides public support, tenders for co-financing energy renovations, and actions for targeting energy-poor households. The Eco Fund manages a network of energy advisors. 

Targeting least efficient buildings and heating appliances: Currently, no specific activities have been identified to target the least efficient buildings and heating appliances during the energy crisis. However, there are existing building databases rating deep renovation opportunities¹See Geodetic Administration of the Republic of Slovenia (GURS): Energy Performance Certificates database. Inspection systems focus on identifying heating appliances with high air pollution emissions rather than low energy performance. 

Energy price interventions: The government has implemented measures to address higher energy prices. This includes lowering excise duties on electricity and energy products. A one-off solidarity allowance of €150 was provided to vulnerable groups. Gas price caps were introduced for households, small commercial users, and social service providers, along with reduced VAT rates¹ Article on gas price caps in Slovenia: https://www.total-slovenia-news.com/business/10321-gas-prices-capped-from-1-september. The current gas tariff does not incentivize the uptake of heat pumps or gas savings. 

Ban on some fossil fuel boilers: The Act on the Promotion of the Use of Renewable Energy Sources prohibits the design and installation of new heating oil, mazut, and coal boilers starting in 2023¹Act on the Promotion of the Use of Renewable Energy Sources (ZSROVE): http://www.pisrs.si/Pis.web/pregledPredpisa?id=ZAKO8236. However, there is no current plan to ban the installation of new fossil gas boilers. 

Minimum energy performance standards permit gas boilers: Minimum energy performance standards for new buildings still treat the installation of condensing boilers as reference option for heating.  This means gas can still be used in new constructions as long as they meet efficiency criteria. By contrast, direct electric heating is prohibited in new constructions, except for specific cases related to renewable energy production and hot sanitary water. 

Investment support for gas boilers: The Eco Fund provides subsidies and incentives, including investment support, for condensing gas boilers in multi-family buildings¹See Ekosklad – Gas condensing boilers. However, support for individual houses is no longer available. 

Absence of price-based measures to reduce fossil gas consumption: While Slovenia has implemented a carbon dioxide emission tax on heating oil, currently, there are no price-based measures such as energy taxation, carbon taxation, or network charges in place to specifically target the reduction of fossil gas consumption in Slovenia. The focus has been on other energy sources. 

Government regulations on fossil gas prices: The Government of Slovenia issued a regulation on determining the maximum permitted retail price of fossil gas for household customers and basic social services. The set price is €0.073/kWh for fossil gas in households and common household customers, and €0.079/kWh for small business customers. This regulation was introduced to address the high prices of oil and electricity and bring stability to the fossil gas market. 

Building stock overview: Slovenia’s building stock consists of 87.3 million m², with 76% built before 1990. Single-family homes represent over half of the stock (53%), followed by multi-family homes (19%), private service-sector buildings (16%), and public buildings (11%). 

Rural-urban dynamics: Slovenia has a highly distributed settlement pattern and a significant rural population. Urban dwellers have also been moving to rural areas due to factors like the impact of COVID-19 and rising real estate prices in cities. 

Oversized and underutilized rural buildings: Many rural homes in Slovenia are large, originally designed for multi-generational living. However, these homes are often oversized and underutilized, leading to high heating costs. Individual biomass furnaces are commonly used to heat only specific rooms. 

Renovation industry: Slovenia’s building stock has limited potential for industrialisation of renovation, as there is a lack of standardized floor plans and building technologies, leading to challenges in implementing energy-efficient measures. 

Energy efficiency challenges and energy poverty: Only a small percentage of renovations in Slovenia achieve medium or deep energy savings¹Comprehensive study of building energy renovation activities and the uptake of nearly zero-energy buildings in the EU: https://op.europa.eu/en/publication-detail/-/publication/97d6a4ca-5847-11ea-8b81-01aa75ed71a1/language-en/format-PDF/source-119528141, indicating a need for more ambitious renovation efforts. A significant portion of single-family homes (45.8%) and multi-family homes (7.6%) falls into lower energy efficiency classes, putting households at risk of energy poverty. 

Slow progress in energy renovations for public buildings: The annual renovation target for central government public buildings was not achieved by 2021. Despite an increase in energy renovations, only 32% of the cumulative target for the period 2014-2021 were implemented by the target date. Although having a renovation programme for the public sector, the construction industry is facing problems when renovating them due to other obstacles such as historical protection or the lack of seismic resistance.  

Energy efficiency standards for new buildings: Slovenia’s current energy efficiency standards for new builds slightly deviate from Commission benchmarks¹Nearly Zero: A review of EU member state implementation of new built requirements: https://www.bpie.eu/wp-content/uploads/2021/06/Nearly-zero_EU-Member-State-Review-062021_Final.pdf.pdf. They are less ambitious for single-family houses and more ambitious for office buildings. NZEB standards also include a minimum renewable energy share of 50% for all building types. 

Heat pump market and support schemes: Slovenia is not a member of the European Heat Pump Association, but it is estimated that between 6,000 and 8,000 heat pumps are sold or installed annually. The Eco Fund provides co-financing for heat pumps¹Overview over government subsidy programmes for heat pumps: https://www.ekosklad.si/prebivalstvo/pridobite-spodbudo/seznam-spodbud/toplotne-crpalke/toplotne-crpalke-subvencija, with 25,690 units co-financed from 2011 to 2017. 

Heat pump stock: In 2019, approximately 50,000 heat pumps were installed in Slovenia¹Report on the energy situation in Slovenia: ttps://www.ceer.eu/documents/104400/7517827/C22_Slovenia_EN/70e75cb8-0f4b-8b71-8663-0c3decbf1545 . Heat pumps accounted for a significant portion of renewable heating and cooling but represented only 2.6% of gross final energy consumption for heating and cooling in the country. 

Air-to-water heat pumps: Air-to-water heat pumps are the most successful heat pump technology in Slovenia, particularly for domestic hot water applications. 

Investment support and financing: Investment support for heat pumps is primarily distributed through the Eco Fund, offering subsidies and green loans. However, some of the support programs have been closed, and it is uncertain when they will reopen. A few municipalities also provide investment support for heat pumps. 

Challenges for heat pump uptake: Heat pumps face competition from biomass due to its wide availability, and in urban areas, efforts have been made to prevent heat pump installations to protect existing district heating and gas infrastructure. Outdoor noise regulations for heat pumps are also not yet in place, hindering their deployment in densely populated areas due to an uncertain legal environment with ongoing lawsuits against noise coming from the outdoor units of air-sourced heat pumps .  

Electricity to gas price ratio: Between the fourth quarter of 2021 and July 2022, the electricity to gas price ratio improved significantly for households (July 2022: 1,3 vs. 2,7 in Q4 2021). Next to the general increase in gas prices, this was also the result of price caps for electricity and gas being introduced in July 2022 by the government. As the price caps will remain in place until the end of the year, the ratio will at stay at 1,3 at least until the end of 2023¹Article on the extension of energy price regulations: ttps://www.euractiv.com/section/politics/news/slovenia-extends-natural-gas-electricity-price-regulations-until-years-end/. 

District heating overview: District heating plays a crucial role in the heat supply of Slovenia, particularly in densely populated urban areas. In 2021, heat distributors supplied 2,448.4 GWh of heat, serving household consumers (39%), non-residential consumers (30%), and industrial consumers (16%) with 15% being heat losses. 

Heat sources: Fossil fuels accounted for the majority (79.7%) of heat supply in 2021, with coal being the primary source (47%), followed by fossil gas (31.5%) and oil and petroleum products (1.2%). Renewable energy and waste heat sources made up a smaller share (20.3%), with woody biomass being the largest contributor (17.3%). 

Challenges and modernization: There has been a decrease in the share of coal and an increase in fossil gas in heat production from 2017 to 2020. However, in 2021, due to high fossil gas prices, there was a slight reversal of this trend¹Report on the energy situation in Slovenia: https://www.ceer.eu/documents/104400/7517827/C22_Slovenia_EN/70e75cb8-0f4b-8b71-8663-0c3decbf1545 . Efforts are underway to modernize production resources. For example in Ljubjana, coal-fired units will be replaced with gas-steam units to decrease coal usage by over 70%²Article on district heating renovations in Ljubjana: https://www.delo.si/lokalno/ljubljana-in-okolica/plin-cistejsi-od-najboljsega-premoga/. 

Distribution systems: In 2021, heat was supplied through 112 distribution systems, with the largest networks located in Ljubljana, Velenje, and Maribor¹Infopage on indicators on district heating in Slovenia: ttps://www.agen-rs.si/web/emonitor/delovanje/daljinska-toplota. Warm-water and hot-water systems accounted for the majority of distribution systems, while steam distribution and district cooling systems represented smaller shares. 

Energy efficiency and pricing: Energy efficiency is a priority, with some distribution systems meeting the criterion of at least 50% of distributed heat being produced from renewable energy sources. However, no system met the 50% criterion for waste heat. End-user prices vary among municipalities, with an average monthly retail price of €95.8/MWh for household consumers in 2021. The energy regulator provides price analyses for transparency and comparison purposes¹Report on the energy situation in Slovenia: https://www.ceer.eu/documents/104400/7517827/C22_Slovenia_EN/70e75cb8-0f4b-8b71-8663-0c3decbf1545.