Twinning Project
Project Number BG2004/IB/EY/01
“Institutional Building at the Energy Efficiency
Agency (EEA)”
Financial Incentives
Seminar
28th September 2007, SOFIA
Ing. Ricardo Silvoni
1
Contents
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Task: Financial incentives: Main financial tools
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Backgroud
Activity
Results
Task: Financial incentives: ESCO
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Backgroud
Activity
Results
Task: Agreement
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Backgroud
Activity
Results
Main steps for the future
2 /11
Task Financial incentives:
Main financial instruments
Background
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EE is a priority and the first action are starting in Bulgarian
Activity
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Analysis of Relevant Bulgarian legislation
Survey on financial instruments actually in Bulgaria
Collection of Italian experiences
Comparison between Bulgarian needs and Italian best practices
Results
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Final Report on financial instruments
3 /11
Task Financial incentives:
ESCO
Background
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ESCO is the main partner to linked needs, solution and finance. At the monet
the Bulgarian ESCO market is in the beginning.
Activity
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Analysis of Relevant Bulgarian legislation
Survey on actually in Bulgaria
Collection of Italian experiences
Comparison between Bulgarian needs and Italian best practices
Results
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Final Report on financial instruments: section ESCO
4 /11
Task: Financial incentives
Main areas to be developed
EEA advice of the EE sistem
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EEA has to assume a significant role to provide assistance to the Municipalities to
support the ESCOs and the relevant financial instruments linked to these
Companies.(i.e EPC Contracts)

EEA has to undertaken more functions in the phase of control and monitoring of the
process to get the above indicative target for Energy Savings. In particular, the EEA
could coordinate the measures implemented in the different energy consumption
sectors and to control the activities of ESCOs through the relevant registration in the
Agency

ESCOs as subject to implement and to manage the EE interventions linked to the
long term Bulgarian EE Strategy Program and the Three Years Action Plan to be
issued in May 2007 by MEE/EEA, accordingly to the EU Directive 32/06.

The Collaboration to EEA BG and SWERC as the ENEA and AEEG (Italian Authority
for the Energy regulation) in order to developed the mechanisms as Italian
mechanisms
5 /11
Task: Financial incentives
Instruments
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Application of contracts as EPC, TPF, BOOT.
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Guarantees form the Central Budget for the Municipalities to be involved in
the EPC with the registered ESCO as contractual partner.
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Financial Yearly Law. Mechanisms including the taxes policy,
subsidizations process and other financial incentives
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Participation also of BEEF BG as guarantee of the sustainable economic
appeal of the projects introduced by the Municipalities/ESCOs with EPC
Contracts.

Market based instruments, in particular the White Certificates ?
6 /11
Task Financial incentives: Agreement
“Co-ordination with local energy efficiency agencies and other
institutions”
Background
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EEA ha
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Activity
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Contact with the key-players
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ABEA
SOFENA
Sofia Energy Center
Plodvid Agency
Drafting the agreement
Signing
Results
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An agreement signed with ABEA
7 /11
Task Financial incentives: Agreement
“Co-ordination with local energy efficiency agencies and other
institutions”
Main objectives
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To increase the relationship of the EEA and other institutions of the
Government in energetic field in particular with ABEA and the other
energetic local agencies of the type ONG.

to work to propose to decentralize some functions of the EEA to develop
the local level, rather the Regions and Municipalities

develop a system of coordination among the EEA and the different
institutions that are present in the territory of Bulgaria. To involve the
National Bulgarian corporate body of the Municipalities, that
represents all the Municipalities of Bulgaria and in this way could become
the fittest channel to individualize an effective mechanism of support to the
different problem list that have to resolve the Municipality in energetic
sector
8 /11
Future steps ?
Financial incentives and ESCO market
•
Keeping E.S.Co. National Register assuring full accomplishment to standards.
•
Certify saving performed by E.S.Co. (i.e. within White Certificates procedures) by
verifying the correct application of the legislation and the quality of the interventions.
•
Assure coordination and congruence to Government policy and targets and assure
adequate technical support.
•
Create the rules of the market to developed the mechanisms to incentive the EE
system as White Certificate.
Agreement
•
The cooperation agreements between EEA and the institutions will stablish the joint
procedures and methods to support the implementation EE and RES measures
from national to regional and local level, including joint information campaigns and
joint projects
9 /11
Italian EE sistem
Effect of the implementation of EE mechanism
Financial incentives and ESCO market
Italian Objectives 2005 – 2006: 0,7 Mtoe
Italian EE mechanism produced energy saving in the end user: 1,4 Mtoe (2005 – 2006)
Mechanism produce: more of 85% fixed of the energy saving (2005 – 2006)
Effectiveness of the Italian Mechanism - White Certificate
3,50
2,00
2,9 Mtoe Energy Saving Objectives 2009
Saving - Mtoe
3,00
1,50
2,50
0,9 Mtoe Energy Saving 2006
2,00
1,00
1,50
1,00
0,50
0,50
-
05
20
06
20
07
20
08
20
09
20
Periodo
Objectives fixed in Italy (AEEG) - Mtoe
Saving reaching by the system - Mtoe
10 /11
…Thank you for your attention
Ing. Ricardo Silvoni
Twinning Project Institutional Building at energy Efficiency Agency
Energy Efficiency Agency
to the Minister of Economy and energy
Bulgaria
1000 Sofia
37, Ekzarh Jossif Str.
tel/fax: + 359 2 981 05 20
[email protected]
11 /11