Financing renovation of public buildings in Slovakia

Panel: 7. Policies for a green recovery in the buildings sector

This is a peer-reviewed paper.

Author:
Katarína Korytárová, Slovak Academy of Sciences, Slovakia

Abstract

In Slovakia, there is more than 12,000 public buildings, most of them in the need of a deep renovation. Renovation of public buildings can provide significant energy savings potential for space heating, both in Slovakia as well as in the EU. In order to utilise this potential, significant investment is necessary, which enable deep retrofit to the lowest possible level of energy demand.

In Slovakia several financial mechanisms have supported renovation of public buildings (Munseff, Pilot project Energy efficiency of public buildings, Environmental fund, Structural Funds 2007-2013, European Structural and Investment Funds (ESIF) 2014-2020 etc.). However, most of these are ad-hoc and mainly dependent on European or international funding. Contrary to the residential buildings, no national financial mechanism for a stable support of public buildings renovation exists. Moreover, most of the mechanisms have no strict energy requirements in place, which may lead to lock-in effect. This changed only in Operational Programme Quality of Environment (2014-2020). Nevertheless, despite the number of different programmes, the total number of renovated buildings is relatively small, and the allocated funds are insufficient. The situation is similar in the Czech Republic and Hungary. It is envisaged that renovation of public buildings is going to be supported in the upcoming ESIF (2021-2027) and in the Recovery Plan. Therefore, it is of utmost importance to direct these investments in such a way that the energy savings potential is utilised to the fullest, further lock-in effect is prevented and public money is spent efficiently.

The aim of this article is to provide an overview of financial mechanisms for renovation of public buildings in Slovakia, summarize lessons learned as well as risks and opportunities of large-scale building retrofit and point out several examples from abroad. Finally, recommendations will be drawn for both national authorities and for municipalities.

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