Energy Efficiency Review of Bulgaria

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• Energy Efficiency Review of Bulgaria
• David Taylor

Findings and Recommendations of the Energy
Charter In-depth Review of Bulgarian Energy
Efficiency Policy   David Taylor, Ireland, Chair
of the Review Team   Sofia, October 2008
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Structure of Report

• Situation
• Background
• Policy
• Activity
• Assessment
• Recommendations

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Sources of Information

• In Depth and Regular Reviews
• Bulgarian Government Publications
• IEA and ODSSEE-MURE statistics
• Presentations from Bulgarian Institutions

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Review Team

• David Taylor Sustainable Energy Ireland
• Inguna Ozolina Latvian Energy Agency
• Herbert Lechner Austrian Energy Agency
• Mr. Peter Nielson Danish Energy Authority.
• Valya Peeva Energy Charter Secretariat
• Wolfgang Eichhammer Consultant to the Secretariat

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Final Energy Consumption FEC
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Industry Sector
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Transport Sector

• Car Statistics
• Stock Increase 60 or 1.0 million
• Ownership 330 cars per 1,000 population
• Average Age 40 are over 20 years old 24 are
  16-20 years old

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Residential Sector

• Housing Statistics
• Permanently occupied 2.82m
• Private Ownership 92
• Central Heating 42
• Appts in Panel buildings 40
• Average Area 63.5m2
• New build rate 13,000pa

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Residential Sector Heat
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Energy Policy

• Energy Strategy
• Adopted by Parliament July 2006
• Energy Law 2003 legal, operational,
  accounting, unbundling
• Chapter 10 D/ Heating billing
• Chapter 11 RES-E and CHP
• Amended 2006, March 2008
• Energy Market Liberalisation
• SERC established 1999
• Unbundling in Electricity and Gas
• Privatisation of operational units

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Energy Pricing Policy

• Market liberalised
• Privatisation well advanced
• Pricing Policy
• Liquid fuels and coal set by market
• Electricity, heat, natural gas subject to
  regulation
• Prices
• Electricity prices are 35 to 50(In) EU average
• Gas prices are 50 (Res) to 60 of EU average

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Institutions of Energy Policy

• Ministry of Economy and Energy
• State Energy and Water Regulatory Commission
  (SEWRC)
• Electricity System Operator (ESO EAD)

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Energy Efficiency Policies and Programmes

• Energy Efficiency Act February 2004
• Amended 2006 and 2007
• Energy Efficiency Agency
• Responsibilities, Targets, Powers
• First National Energy Efficiency Action Plan
• National Programmes
• EE short and long term programmes under the EE
  Act
• Sectoral EE programmes for Building, transport
  and SMEs

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Energy Efficiency Programmes by Sector

• Residential Sector
• Measures linked to EU Accession
• Measures in Support of Thermal Performances of
  Homes
• Subsidies and fiscal measures
• District Heating
• Modernisation of the Network

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Energy Efficiency Programmes by Sector

• Industry and Tertiary Sector
• Energy management with efficiency and audit focus
• Grants to support energy management
• Energy management in Municipalities
• Transport Sector
• Mandatory measures
• Taxation measures

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Organisation of Energy Efficiency Activities

• Ministry of Economy and Energy
• Form EE and Environment Protection Division
• Legislative initiative, implementation control
• Energy Efficiency Agency
• Executive Agency, Established 2002
• Mandate flows from Energy Efficiency Act
• Enlarged mandate and responsibilities
• Ministry of Regional Development and Public Works
• Regional and Local Authorities - Others

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Financing Energy Efficiency

• Sources of Funds
• Ten principal sources
• Commercial banks, state, EU and international aid
• Funding Schemes
• Five principal schemes
• Sectoral, revolving project and credit lines
• Grant funding
• Four EU Operational Programmes (OP)
• Economic, development, transport, environment

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Renewable Energy PolicyRES-E

• Targets
• 2010 11 of RE in electricity consumption
• 2020 16 in draft EU Directive
• Potential
• Biomass and Wind
• Geothermal and Solar
• Incentives
• Feed in tariffs

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Market response
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Recommendations - General

• Ample evidence of a structured approach
• Not clear that the resources required are
  available
• Significant progress in implementing EU
  Directives
• Continued efforts necessary
• Low income groups are vulnerable
• Sensitive and sustainable EE measures required
• Energy market reform well advanced
• Look to ESD for enabling EE market opportunities

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RecommendationsEnergy Efficiency Policy

• Deliver Energy Efficiency Action Plan (NEEAP)
• Focus on pace and co-ordination
• Monitor Implementation of NEEAP
• Adjust in the light of progress
• Engage market actors
• Review interaction of measures
• Balance objectives and pathways

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RecommendationsLegal Framework and Energy Markets

• Legal Framework
• Enact Condominium Law
• Monitor success
• Energy markets
• Stimulate PPPs and ESCOs
• Structure for sustainable energy services to appts

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RecommendationsInstitutional framework

• Ministry of Economy and Energy
• Build implementation capacity
• Secure resources in line with EE Act
• Energy Efficiency Agency
• Enhance capacity to analyse and act on audits
• Add value through promotional activities
• Local Actors
• Strengthen LEA and Energy Officers in
  Municipalities

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RecommendationsEnergy Efficiency Funding

• Raise awareness of existing funds
• Position for additional OP funding at review
• Build on success of revolving funds (BgEEF)
• Test a variety of approaches to Panel
  buildings
• Maximise Kyoto JI up to 2012

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Recommendations SectoralBuilt Environment

• Facilitate improvements to energy performance of
  building stock
• Promote legal structures for energy service
  provision to panel and other multi-family
  buildings
• Monitor and assess true costs of electricity use
  for heating
• Ensure appropriate standards for heating
  appliances e.g. heat pumps, are in place
• Promote building energy rating

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Recommendations - SectoralIndustry

• Evaluate audit results to date
• Promote replication of lessons learned
• Build networks for Energy Managers

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Recommendations- SectoralTransport

• Fiscal measures targeting purchase and use
• Sustainable planning and infrastructure provision
• Public transport infrastructure investment

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RecommendationsEnergy Supply
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RecommendationsData Collection and Monitoring

• Monitor and Evaluate Energy Efficiency Actions
• Develop the capacity to make forecasts
• Publish results
• Develop Energy Efficiency Agencys Capacity
• People
• Software
• Hardware

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Conclusion

• The Team would like to express its thanks to
• The Bulgarian Authorities and the EEA in
  Particular
• The Energy Charter Secretariat, and our
• Rapporteur Wolfgang Eichhammer