Citizens.al

Buildings without energy class, certification obligations remain on paper

Graphic illustration/Citizens.al

Author: Ola Mitre | Citizens.al

Albania has approved the legal framework for the energy performance certificate of buildings for years, but this document remains almost unknown to citizens and the real estate market.

Despite certification being a legal requirement since 2016, there is no public registry showing the energy quality of buildings. No sale or rental transaction is allowed without the certificate in question, but in practice the document is only used to pass construction permit procedures.

What is an energy performance certificate?

The energy performance certificate estimates how much energy a building consumes for lighting, heating, cooling, ventilation, hot water and household appliances.

It is issued by licensed energy experts, auditors, based on an approved methodology that classifies the electrical system of buildings on a scale from the most efficient (A+) to the least efficient (G).

The certificate is then deposited with the Energy Efficiency Agency (EEA) no later than 3 days from its issuance.

This certification report is a quality indicator for buildings and, since 2016, mandatory for any new or existing building undergoing a major renovation.

However, data shows that no certificates have been issued for existing buildings before 2021.

The system, launched in 2016, appears to only function at the construction permit application stage, while the document is then "archived" in the EEA and is not publicly accessible.

The importance of the energy performance certificate

Data shows that residential, public and commercial buildings are the largest energy consumers in Albania with 37.08%.

According to the draft National Building Renovation Plan, in 2023, Albania counted 632,936 dwellings, 71.2% of which were inhabited. In parallel, there are 9,492 public buildings and 85,098 commercial service buildings.

"In addition to the large number, most of the stock is outdated, uninsulated and does not even meet the minimum standards of energy efficiency and living comfort," says environmental expert, Kristi Bashmili.

"If buildings are uninsulated, use inefficient equipment, or use unclean energy, this translates into higher air pollution, excessive energy consumption, higher costs for citizens, and a negative impact on the health of the population," he adds.

Many studies show that a highly energy-efficient home, which includes, among other things, thermal insulation and double-glazed windows, can reduce energy bills by 50-70%.

However, in our country, even when a home renovation is carried out according to the principles of energy efficiency, no one certifies the quality of the intervention.

"We often hear that building facades are insulated from behind, someone comes out and says 'You saved 50% energy'. Did you really save 50%?! Nobody knows. Only the certificate measures this," says energy efficiency expert, Gjergji Simaku.

AEE told Citizens.al that over 150,000 new building units have been certified to date and that this work has begun to be implemented. "since 2021".

Simaku confirmed that the certification system "warmed up" at the time the certificate was made a condition for obtaining a building permit.

Every builder was forced to submit the document as part of the permit file, thus producing tens of thousands of certificates that exist to pass bureaucratic filters.

"We have 150 thousand certificates, because every building permit requires one, but the situation does not end there. Is the certificate so valuable and so popular?! Before buying a car, we look at 'how much it costs', but none of us are oriented towards a new building through the certificate and therein lies the problem," Simaku analyzes. 

Even more worrying is the situation for existing buildings before 2021, as no such certificate has currently been issued.

The EEA did not provide an answer as to when this process is expected to begin, which according to experts should not be simply a formal document, but a necessary standard to guarantee quality and reduce energy consumption in the building sector.

"The 2016 law was a good omen and we hoped that the situation would change. In fact, it brought some positive aspects, but the institutions themselves did not have the will to move it forward," says Bashmili.

"Now, we are facing a fundamental change in the law, without having a quality report on the applicability of the first one, which could lead to uncertainty and distrust in the implementation and force of the law," he continues.

Graphic illustration/Citizens.al

Real estate market

In the real estate market, the energy certificate is an important transparency tool. In the European Union, an apartment with an energy class of “A” or “B” has a higher value because buyers know that it will have low operating costs. However, this is not the case in Albania.

"We are part of the European network and in Europe it is a 'big deal', while in Albania awareness is very low even among those who trade in real estate," says Reinaldo Pipiria, president of the National Association of Real Estate Brokers of Albania. 

"I definitely worry about good, quality construction, acoustic and thermal insulation, air conditioning. We want these, but in Albania we can't always say, 'Do you have certification?' Can you confirm that for me?" he adds. 

In fact, the law in Albania requires that when buildings or building units are constructed, sold, or leased, the certificate must be delivered to each buyer or tenant.

"We sell new apartments endlessly, but it's never been a topic of 'Look, it doesn't have a certificate!'. There's never been any discussion about whether this exists, is it a plus, is it a minus, it's never been discussed," says Pipiria.

He also brings to attention the model that is followed abroad when someone wants to buy a home.

"In the case of Europe and America, the buyer has the right to inspect the real estate with a professional inspector and he brings out the strengths and weaknesses of the house. We do not conduct a property inspection, nor do we require a certificate for what we declare to be invested," he says.

In light of this situation, there is currently no public database showing the energy class of buildings. Legislation requires its establishment, but the data can only be accessed upon request to the EEA.

"There should be a national database, as exists in Italy or other countries, and concrete examples should be taken from EU countries," says Simak.

"At least we know how to copy and we know how to adopt the way of issuing certificates. Things should not be done just for the sake of talking, but they should be done in reality and on a massive scale throughout the country," he points out. 

Bashmili also believes that measures need to be taken to benefit from the effects of energy efficiency in buildings. According to him, increasing energy performance and using quality materials and equipment directly affects the improvement of the internal environments of buildings.

"This reduces indoor air pollution, noise and improves the quality of life. So, it is vital both in terms of saving energy, increasing comfort but also in terms of protecting natural resources," he explains.

Meanwhile, Pipiria calls for an awareness campaign to be undertaken, but also for more responsibility from institutions. 

"The moment we become part of the EU, the burden of the agenda or green transition is very great and I don't know how we will find those billions. Therefore, I am 'in favor' of awareness, certification and increased performance, but it must be accompanied by an incentive fiscal policy and accessible financial means," he concludes.

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