RENOVATION OF THE EXISTING BUILDING STOCK AS THE BIGGEST CHALLENGE

Photo: Goran Zlatković

The real estate sector in Serbia is definitely turning in the direction of energy-efficient solutions, but a big job, which the economy and citizens alike need to do, is yet to come. This is the general conclusion of the conference REMHUB 2022: Driving Energy Efficiency in Real Estate, which was held on November 30 in Belgrade. The conference was organized by West Media World with the institutional support of the Ministry of Mining and Energy, the Serbian Chamber of Commerce and Industry, and the Serbian Green Building Council.

THE FIRST REMHUB CONFERENCE GATHERED MORE THAN 100 PARTICIPANTS AND GUESTS

The implementation of energy-efficient solutions affects the energy stability of the entire country, and so far it is most visible in the commercial real estate sector, since investors who develop projects of new office buildings and industrial facilities or projects of reconstruction are very careful about how energy will be consumed in the facilities they rent out.

On the other hand, the residential sector is currently lagging behind in the greater application of energy-efficient solutions. There are, of course, examples of good practice in new buildings, but, in general, this problem is left to future property owners. That implies that in the future, it will be critical to educate citizens about the importance of energy efficiency because they are expected to raise the standard currently offered by investors. 

The same applies to the rehabilitation of the existing housing stock: citizens are the ones who need to understand the importance of energy investments and to take advantage of numerous measures and subsidies offered by the state because every investment will pay off many times over in the shortest possible time.

The state has taken upon itself the improvement of energy efficiency in buildings in the public sector, in which the Ministry of Mining and Energy is maximally engaged. At the same time, the economy has a great responsibility because it can ensure the greatest energy savings in production by using energy-efficient equipment and installing solar panels on roofs. These are the most important messages that were heard at the REMHUB 2022 conference on energy efficiency in the real estate sector.

Numerous participants of the conference, including representatives of competent institutions, organizations, and companies operating in the real estate sector, tried to give answers to the questions of how ready the construction and real estate sectors in Serbia are for the current energy crisis, whether we are building energy-efficient buildings, how much progress we have made in the energy rehabilitation of existing buildings, but also what is our attitude towards energy consumption in general, and how smart facility management can save energy in industrial, commercial, and residential buildings.

The general conclusion is that energy efficiency should become a standard in the construction industry and the management of commercial, industrial, and residential facilities, that we have taken the first steps in that direction, and that it is the duty of the entire society to raise energy efficiency to a much higher level in the following year.

MILAN MACURA, ASSISTANT TO THE MINISTER OF MINING AND ENERGY

The conference was opened by Milan Macura, Assistant to the Minister of Mining and Energy, who pointed out that energy efficiency must also be seen in the context of the security of our country and that we must all participate in the energy transition together—citizens, the economy, and local governments.

He reminded everyone that the Law on Energy Efficiency and Rational Use of Energy was adopted last year and mentioned the projects that the state implements, in cooperation with international creditors, to increase the energy efficiency of private and public buildings. Macura pointed out that it is extremely important to install solar power plants on buildings in the public sector and that the Ministry of Mining and Energy works intensively to improve the operation of the district heating system because there are very large losses in that area of energy.

"A pilot project for subsidies for replacing carpentry, insulating roofs and facades, and replacing heating systems for 20,000 households is underway. In the next two or three years, another 70 million euros will be allocated, so another 100,000 households will be included in the project. By the end of the year, we expect 70 contracts in 38 local self-governments for the rehabilitation of public buildings by installing alternative energy sources. In three towns, Novi Pazar, Priboj, and Mali Zvornik, biomass heating plants were built, and the plan is to reconstruct another 20 heating plants that have large losses and affect air quality," said the assistant minister, who emphasized that the economy has a great responsibility because it can provide the greatest energy savings in production by using energy-efficient equipment and installing solar panels on roofs.

IVANA VULETIĆ, SECRETARY OF THE CONSTRUCTION INDUSTRY ASSOCIATION

Ivana Vuletić, secretary of the Construction Industry Association of the Serbian Chamber of Commerce and Industry, opened the first panel on the topic "Green construction as a response to the energy crisis and green transition," reminding the audience that the construction sector employs 7% of all employees in Serbia, or 170,000 workers in 40,000 companies, and that the construction sector contributed 6% of GDP last year, while the real growth rate was 2%.

THE FIRST PANEL WAS ABOUT GREEN BUILDING AS A RESPONSE TO THE ENERGY CRISIS

She stated that in the next five years, the European Union plans to invest 2.5 times more in sustainable construction, as well as the fact that the goals of the green agenda have been accelerated and that the original deadline of 2045 has been moved to 2030.

"In Serbia, the number of buildings with green certificates this year is four times higher than in the previous year. For the sake of comparison, Germany is only the seventh country on the list of the top 10 countries in terms of green construction. This means that in relation to the rest of the continent, in terms of green construction, we are not behind, but we have to think about the future," said Ivana Vuletić.

DRAGANA KORICA, EXECUTIVE DIRECTOR OF THE SERBIAN GREEN BUILDING COUNCIL

Dragana Korica, executive director of the Serbian Green Building Council, made an observation as the moderator of the first panel: green building is growing exponentially in the commercial real estate sector.

"We had around 30 newly built green-certified buildings last year, but there were 110 in September of this year. Unfortunately, this trend goes beyond residential construction. With a few exceptions, developers in the housing sector have not yet followed the path taken by investors who build certified office and industrial facilities and logistic centers," Dragana Korica said. 

NATAŠA BUGARINOVIĆ, HEAD OF SUSTAINABLE DEVELOPMENT AT MPC PROPERTIES

Nataša Bugarinović, head of sustainable development at MPC Properties, pointed out that the company, which has six office buildings and six shopping centers in its portfolio, opted for a strategy of green development and green construction ten years ago and that this type of investment is well worth it.

"MPC office building Navigator 1 is the most energy efficient building in Belgrade. The annual consumption per square meter is 150 kilowatts, while other business buildings have a consumption of 250 to 300 kilowatts per square meter," said Nataša Bugarinović adding that the Ušće shopping center is one of the first and largest certified shopping centers in this part of Europe. A solar power plant was recently installed on its roof, which produces energy to power the chargers for electric vehicles in the facility's garage.

VLADIMIR LUKAČ, SENIOR PROJECT MANAGER AT CTP SERBIA

Vladimir Lukač, senior project manager at CTP Serbia, pointed out that all the buildings of this company in Serbia are holders of BREEAM green certificates and that they are designed in such a way that the roof structures can carry solar panels, which the company will install on all buildings next year.

"CTP is the largest developer of industrial facilities and logistics parks in Southeast Europe, with a portfolio that includes 10 million square meters of built facilities, and sustainable development is part of the company's strategy. CTP buys forests or lands that we reforest in order to contribute to carbon neutrality," said Vladimir Lukač adding that the company's plan is to double the currently built 250,000 square meters of buildings in Serbia in the next year, with the aim of having a portfolio of a total of 1.3 million square meters by 2026.

MILOŠ KOSTIĆ, DIREKTOR MT-KOMEX

As a pioneer in the field of solar power plant construction, Miloš Kostić, owner and director of MT-Komex, emphasized the importance of passing the Law on Renewable Energy Sources last year, which enabled the installation of solar panels on all types of buildings.

"We still need to work on simplifying all procedures for consumers, above all for connecting to the electricity grid, but the most important thing is that the citizens understand that they should and can join the energy transition. The energy crisis came at the right time to make us aware. Until recently, there was only talk about environmental protection, and now the priority is energy efficiency and energy stability," said Miloš Kostić who assessed that 2023 will be an important year in Serbia for the development of solar power plants, both in the industrial and individual construction sectors.

VITOR ANTIĆ, RMX MANAGER AT LAFARGE SRBIJA

Vitor Antić, RMX manager at Lafarge Srbija, a member of the Holcim Group, emphasized that in the construction industry it is no longer possible to work without green products, which is why this company has been intensively developing products in its ECO portfolio for years, such as green concrete and green cement, with a significantly reduced carbon footprint.

"Urbanization is on such a scale that by 2050, more than 70 percent of the world's population will live in cities. What is the impact on climate change when a city the size of Paris is built every week on the planet? The new 52 Paris per year challenge is significant. Lafarge was the first to decarbonize its products, and we also contribute to nature conservation through business practices such as the use of biogas trucks. It is up to us in the construction industry to decide if we want to change the classic way of building and if we will reset to new, green products for the benefit of all of us and future generations," said Vitor Antić.

The second panel, "Innovative systems for energy rehabilitation and new generation buildings," was opened by Marko Stojčić, the chief urban planner of the City of Belgrade, who admitted that we have not yet substantially resolved the issue of energy efficiency, which is important both for economic reasons and the cost of living in a big city would be reduced, as well as its impact on the environment.

MARKO STOJČIĆ, THE CHIEF URBAN PLANNER OF THE CITY OF BELGRADE

"We are aware that Belgrade has many residential buildings that are at the bottom of the scale in terms of energy efficiency and that we will have difficulty bringing them to a satisfactory energy level, but we have to deal with their rehabilitation. We have started discussions with the representatives of the EBRD bank on this very topic with the aim of starting a pilot project for rehabilitating a part of the housing stock as soon as possible, most likely in New Belgrade. The city will co-finance such projects as much as it can, and of course, some will be fully financed, such as buildings that are monuments to culture," said Marko Stojčić who emphasized that it is important to spread awareness about energy efficiency and investment in it in every way —through the media and conferences, but also through the conversations we have every day.

THE SECOND PANEL WAS ABOUT RECONSTRUCTION AND ENERGY REHABILITIATION OF OLD BUILDINGS

The city's chief urban planner also emphasized the importance of implementing residential unit classification by energy efficiency category as soon as possible, as is the norm in all developed countries. 

BOJAN BOGDANOVIĆ, EBRD / SERBIAN GREEN BUILDING COUNCIL

The second panel's moderator, Bojan Bogdanović, principal manager of the EBRD's ReDEWeB fund and president of the Serbian Green Building Council, reminded us that we have entered an energy crisis as a "new abnormality" that stems directly from the "new normality" caused by the pandemic.

"Energy efficiency must be a priority in our society. The state is doing its thing. The National Climate and Energy Plan, which will be the basic document for any further strategy, says the following: in order for Serbia to fulfill what it promised through the Green Agenda and all other agreements by 2030, we must invest 18.5 billion euros in buildings and only six to seven billion for the production of electricity and thermal energy. Who will design it? Who's going to make it green? We can't just do; we have to do better. Everyone who is involved in the design, construction, and management of facilities must come to these meetings to agree on how to spend that money. Money is not in dispute; the question is whether there are enough of us who want and know how to work green. From the economic investment program of Europe, a grant of 2.5 billion euros has been secured for Serbia, which will be intended primarily for energy and energy efficiency," said Bojan Bogdanović.

Bogdanović added that the state strategy for buildings says that we need to renovate four to six million square meters of existing buildings annually, that two million square meters of new buildings are expected to be built, and that the renovation of the existing building stock is currently the biggest challenge.

DARIJA RAŠČANIN, DESIGN AND CONSTRUCTION MANAGER AT DELTA REAL ESTATE

How to turn a four decades old building, with the status of cultural monument – Sava Center – into an energy-efficient one, explained Darija Raščanin, design and construction manager at Delta Real Estate.

"Energy rehabilitation of the roof sheathing and facade was carried out. The concrete facade's repair received particular focus. Thermal insulation qualities received just as much attention as aesthetic and structural qualities. Systems for heating and cooling have been improved to be more effective. It was not our goal to just refurbish the building; rather, we wanted to make it functional and energy efficient for the next 40 years so that the majority of the roof surface will be prepared for the installation of solar panels", said Darija Raščanin.

The reconstructed Sava Center is most likely to have a BREEAM certificate, while the new office building of Delta holding, Delta House, is the holder of the LEED Gold certificate.

"Certification is not our primary goal; rather, it is the result of the numerous efforts we have made and will continue to make to ensure that the building reaches its full potential”, added Darija Raščanin, who also came to the conclusion that older buildings are not necessarily inferior to brand-new ones. On the contrary, they can even be better, but in order to achieve this, investors must have the experience, knowledge and willingness to deal with it.

LELA ALEMPIJEVIĆ, CEO, ZABRISKIE

Also, the renovated former Novkabel factory in Novi Sad, the new home to Schneider Electric Serbia development center from spring, will be completely energy efficient, with a LEED Gold certificate, announced Lela Alempijević, CEO of the Zabriskie studio, which designed the reconstruction of 17,000 square meters of this former industrial building, with the aim of becoming a modern office building.

She emphasized that the greenest building is the one that has already been constructed and already exists. Schneider Electric Serbia, the project's tenant and future user, as well as the designers, agreed that maintaining an existing design while using new building techniques and materials is the best way to address the lack of available land, increase energy efficiency, and maintain a neighborhood's unique identity.

EDIN DALIFI, PROJECT MANAGER, XELLA SRBIJA

Edin Dalifi, project manager at Xella Serbia, also spoke about the use of new products and energy-efficient solutions both in the construction of new buildings and the renovation of existing ones.

He reminded everypne that energy efficiency doesn't mean only saving energy, but also standards of comfort and quality of space.

"Our company produces material that gives comfort in terms of acoustic and thermal insulation, through the three well-known products in the market: Ytong, Silka and Multipor. Although the norms in this field are outdated, the good news is that the demands for new materials are coming from the market itself", said Edin Dalifi.

He added that Silka blocks provide protection of 58 decibels, despite the fact that 52 decibels of sound insulation between partition walls is required by current standards, and that they have been an excellent solution for Hotel Indigo, which opened in a pre-war, reconstructed building in Knez Mihailova Street, in the heart of Belgrade.

DANIEL BERG, CHIEF OF PARTY OF THE USAID BETTER ENERGY PEOJECT

Daniel Berg, Chief of Party of the USAID Better Energy, a five-year long project, with a budget of 10 million dollars, which is designed to develop and support local solutions for improving energy efficiency in Serbia and raise awareness of the importance of such energy investments, did not hide his positive impression after his visit to Valjevo, a day before the conference.

"In this local self-government, on a pilot project, we showed to property owners in residential buildings all the benefits of increasing energy efficiency. The goal of the project is to demonstrate that energy efficient measures are possible and financially sensible. We work with local public and private partners. Our focus is primarily on multi-family buildings, because research show that in such buildings, more than 50 percent of the delivered energy is often wasted," said Berg.

THE THIRD PANEL WAS ABOUT SMART FACILITY MANAGEMENT AND ENERGY SAVINGS

The third panel was dedicated to the "Facility Management: smart management for energy savings", in which great experts in energy and facility management participated. However, the moderator Marko Andrejić, editor-in-chief of the Biznis.rs magazine and portal, firstly asked the panelists to share their personal tricks for saving energy in their homes.

MARKO ANDREJIĆ, EDITOR-IN-CHIEF OF BIZNIS.RS

Among other things, we could hear that if we want our homes to be energy efficient, we should replace all classic light bulbs with LED lighting, invest in home appliances of a high energy class, that consume less energy, replace worn-out carpentry and insulation, and install smart heating systems.

While giving answers to the more expert part of the topic, the panelists pointed out daily challenges they face as energy management professionals, between the needs of investors, tenants and real conditions.

DEJAN PAVLOV, SENIOR FACILITY MANAGER, CBS INTERNATIONAL SERBIA

Dejan Pavlov, Senior Facility Manager at CBS International Serbia, pointed out that there are numerous ways to control energy consumption in large office buildings, but that it always comes to juggling act between investors and their needs to make costs as optimal as possible, and the demands of tenants who refer to the contractual obligations of investors and want comfort.

"Energy savings are possible, no matter how small changes are, because even the smallest percentage achieved on a large project, in relation to the total investment, means a lot. That is why, before the start of a project, it is crucial to show investors how much investing in green and energy-efficient solutions will bring them savings in the exploitation phase, as well as competitiveness on the market", pointed out Dejan Pavlov.

VLADIMIR BAIĆ, FACILITY MANAGEMENT SPECIALIST, IREP&WEST

Vladimir Baić, facility management specialist at IREP&West, emphasized that it is very important for quality energy management to assess the situation and manage it in real time.

"We managed to create a software-technological solution for clients that allows us to monitor the working environment in the entire facility via the Internet, in real time, with the help of sensors. With this solution, we can save the building owner or client 10 percent to 27 percent on energy costs. This is especially important for tenants of office space in the IT industry, who are increasingly practicing a hybrid work model, which implies that not all the employees are at the workplace at the same time, which is an opportunity for real-time savings," said Vladimir Baić.

ALEKSANDAR MACURA, RES FOUNDATION PROGRAM DIRECTOR

The RES Foundation's program director, Aleksandar Macura, emphasized the importance of changing social attitudes toward energy efficiency, which must be accompanied by appropriate policy changes. 

"Unfortunately, in Serbia, we still have a million households that are heated by solid fuel stoves. That's millions of cubic meters of wood. 60,000 pieces of home appliances that are not energy efficient are imported annually onto the market. In such a situation, when the consumer chooses between an appliance at a price of 20,000 dinars and an appliance at a price of 80,000 dinars, it is clear that he will not think about the energy-class feature, but about the price", said Aleksandar Macura.

NENAD JOVANOVIĆ, ENERGY CONSULTANT, LDK CONSULTANTS

Nenad Jovanović, energy consultant at LDK Consultants, underlined that as long as the issue of energy and energy products is considered in the corpus of public policies, under the microscope of the social dimension, no significant progress can be expected. According to his assessment, in the process of Serbia's energy transition towards green energy and a step forward in the field of energy efficiency, in order to achieve the set goals of the Green Agenda, 80 billion euros are needed.

Two case studies were also presented at the conference.

IVANA PETRONIJEVIĆ, ARCHITECT CONSULTANT, ALUMIL

Ivana Petronijević, architect consultant at Alumil, presented the project of the renovation of the Google office building in New York, one of the largest office buildings in the world, which was supposed to improve the aesthetic value of the building and its energy efficiency, for which Alumil supplied the most modern window system and installed 3,500 windows with an extremely high level of thermal insulation.

NEMANJA GRUBJEŠIĆ, SALES DIRECTOR, CHARGE&GO

Nemanja Grubješić, sales director at Charge&GO, presented the first regional digital platform for charging electric vehicles and a mobile application with the network of chargers, which currently includes more than 500 AC and DC chargers at gas stations and roads of the first and second order in Serbia and the region. Considering the expected progressive growth of the number of electric cars in Serbia in the coming years, the installation of chargers for e-vehicles in private or public buildings represents an investment that will increase the value of the property in the future.

The partners of the REMHUB 2022 conference were: AFI Europe, Xella Srbija, Delta Real Estate, Alumil, CTP Srbija, Lafarge Srbija, Granit Invest, MT-Komex, Charge&GO, Irep&West, USAID and Securiton.

The media sponsor of the conference was Real Estate Magazin. The media partners of the conference were: Blic Biznis, Biznis.rs, eKapija, BIZLife, Energetski portal i nekretnine.rs.

REMHUB 2022 CONFERENCE / VIDEO: NIKOLA MLADENOVIĆ

By: Jovana Nikolić, Aleksandra Mirković

Photo: Goran Zlatković