April 30, 2018

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.

Implemented by: Municipality of Litomerice Agency
Jaroslav Klusak, City Energy Manager, Litomerice, e-mail: Jaroslav.klusak@litomerice.cz
Lessons learnt
TRANSFERABILITY: YES, at the local level.
• innovative financing mechanisms aren't used (Art. 20)
• financing facilities aren't established for energy efficiency improvement measures (Art. 20)