Case Study 23: KredEx. Energy Efficiency Competence Centre

May 26, 2009

CB_Case23.jpgEnergy efficiency advice for multiapartment buildings

2001-, Estonia

multiapartment buildings, public buildings


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Summary of the case

KredEx - Estonian Credit and Guarantee Fund, was established in 2001 by the Ministry of Economic Affairs and Communications with a purpose to improve the financing opportunities of small and medium-sized companies, manage credit risks connected with export, enable people to build or renovate a home, apartment house and develop energy-saving way of thinking, thus change their behavioural habits towards improved energy efficiency. The mission of KredEx is manyfold and relies on public interest:

  •  Increasing of the competitive strength of Estonian companies, improving the availability of financing and decreasing credit risks;
  •  Improving of the housing conditions of Estonian inhabitants, expanding financing opportunities and developing energy-saving way of thinking.

In general, KredEx offers financial solutions, which are based on the best practices of the world to achieve the abovementioned goals. KredEx is created to significantly decrease market failures regarding the services that organizations active in the private market do not wish to offer yet due to small market share, low profitability or other reasons, but which are still necessary, considering the development of Estonian economy or improving the quality of life of population. The purpose of KredEx is to serve the interests of the Estonian society as a whole.

KredEx has three departments; Marketing and product developing, Risk management and Finance & IT departments. It also has three divisions; Enterprise and export, Housing, and Energy Efficiency Consulting Centre (ESK). Two latter units are directly dealing with energy efficiency issues in housing sector we will be studying in present case study overview.

The Energy Efficiency Consulting Centre (ESK, in local language - Energiasäästu Kompetentsi-keskus) is a specific programme of its’ kind, which has been created inside of KredEx with the aim to help housing associations to improve their energy efficiency performance. The direct target is, to reach, in fact, the real energy savings in block houses, to improve the quality and comfort of the inhabitants’ living environment. The indirect aim is to save local fuels and thus also mitigate the climate warming. Saving fuel in the heating sector allows to combat climate change through reduction of CO2 emissions. The programme is also oriented to reduce the resource consumption, promote sustainable lifestyles through enhanced awareness of energy saving and efficiency.  ESK was founded in January 2007 only on the initiative of Estonian Credit and Guarantee Fund KredEx. All activities of ESK are carried out in the frame of KredEx activities therefore the general characterization of KredEx is also relevant in case of its housing and consulting centre activities.

KredEx is an independent organization acting as provider of financing services and services mitigating financial risks. It also serves as an administrator of information regarding energy efficiency for apartment buildings and more extensively all inhabitants of Estonia, and a coordinator and implementer of activities on that matter. The purpose of KredEx is to offer solutions for eliminating the constraints and barriers of solutions, which have great importance for the society in cooperation and in accordance with other stakeholders acting in the same field of activity. The task of KredeEx and ESK is offering of solutions based on strengths of all interested parties, coordinating the respective development activities and offering support to the possible extent most of all through state guarantees, as well as knowledge and skills.

In the frame of present case study a complex refurbishment project of an apartment house in Estonia will be described. This project was carried out in the bigger project BEEN - Baltic Energy Efficiency Network for the building stock project within the framework of the European Union programme INTERREG IIIB. The duration of the project was from the mid of 2005 until the end of 2007. From the Baltic Sea Region there were five European Union member states involved: Germany, Poland, Estonia, Latvia, Lithuania plus Russia and Byelorussia.