With public budgets of local authorities being very strained in the Czech Republic, there is a strong need to use limited financial resources in a smart way. Before the revolving energy having fund was set-up, this was not the case. There was no strong incentive for individual city departments to engage in energy efficiency, as the money they had achieved through first energy efficiency measures –i.e. through refurbishing/insulating buildings – was sent to 100% to the municipal budget and then reallocated for various projects in the city. There was no direct “benefit” for a department to save more energy, as it could not keep a portion of the financial savings for its own projects. The Czech municipality of Litomerice has set up in 2014 a revolving energy savings fund, which uses the municipal budget as its main funding source. The money acquired through energy savings measures are redistributed in the following way: 35% allocation to municipal budget, 30% allocation to revolving energy savings fund, 30% allocation to the municipal department that implemented an energy efficiency measure and 5% allocated to a Commission fund. The fund targets energy efficiency measures in Litomerice’s municipal buildings. In the starting year 2014, EUR 69000 were allocated.
• innovative financing mechanisms aren't used (Art. 20)
• financing facilities aren't established for energy efficiency improvement measures (Art. 20)