Evaluation of the cost-effectiveness of the installation of heat-cost allocators in multifamily buildings in Croatia

Abstract

In order to improve energy efficiency, the Croatian government introduced an individual metering obligation for all district heat network users. The purpose of the research was to evaluate this policy measure regarding its effects on tenants’ behavior and energy savings, but also from the perspective of cost-effectiveness. The sample includes approximately 20% of all Croatian users of district heat energy. Energy savings related to the installation of heat cost allocators are calculated by comparing the specific heat energy consumption, corrected for the number of heating degree days, in periods before and after the installation of the heat cost allocators. The cost-effectiveness assessment is based on the concept of the net present value. The transition to individual metering in Croatia resulted in significant energy savings averaged from 20 to 35%. However, low heat energy prices in cities with a dominant share of heat energy consumption did not ensure a positive net present value of investment for all buildings.