Final
DRAFT
ALLIANCE TO SAVE ENERGY
Southeast European Energy Market Support
ENERGY COMMUNITY
STOCKTAKING ON ENERGY
EFFICIENCY
May 2008
Foreword & Acknowledgements
This assessment aims to describe the energy efficiency policies enforced in the countries of
Southeast Europe – members of the Energy Community Treaty as well as its observer
countries. Through a survey of partners and desk review, the Alliance to Save Energy
together with USAID and with input from EAR, tried to draw conclusions on the existing
legal, regulatory, institutional, policy and programmatic capacities to effectively promote
energy efficiency through the efforts of the state and other stakeholders in those counties.
Most importantly, this study aims at identifying the gaps in the national energy efficiency
framework, where technical assistance and legal, regulatory, institutional capacity
strengthening is necessary.
The assessment is meant to help donors and policymakers understand the key issues related
to energy efficiency policies and programs to help improve the ability to tackle the barriers
for effective utilization of the national energy efficiency potentials also in the general
framework of harmonization with EU legislation.
The authors are grateful to the organizations and experts who contributed their time to
helping collect the data necessary for this stocktaking exercise
The study is financed by the United States Agency for International Development under the
South East Europe Regional Energy Market Support Program as a sub-contract with the
International Resource Group.
Alliance to Save Energy
1850 M Street • Suite 600 • NW • Washington, D.C. 20036
E-mail: [email protected] • URL: www.ase.org; www.ase.org
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Table of Contents
FOREWORD & ACKNOWLEDGEMENTS .............................................................................................................................................. 2 ABBREVIATIONS .......................................................................................................................................................................................... 4 MEASUREMENT UNITS ............................................................................................................................................................................... 5 EXECUTIVE SUMMARY .............................................................................................................................................................................. 6 1. BACKGROUND AND METHODOLOGY .............................................................................................................................. 8 OBJECTIVES .......................................................................................................................................................... 8 METHODOLOGY, DATA AND SOURCES ........................................................................................................................ 8 2. LEGAL AND REGULATORY FRAMEWORK ................................................................................................................... 10 REGULATIONS ON POWER GENERATION ................................................................................................. 11 ENERGY EFFICIENCY STANDARDS, CERTIFICATION AND LABELING FOR EQUIPMENT AND BUILDINGS..... 12 REQUIREMENTS FOR HEAT METERING AND CONSUMPTION-BASED BILLING............................................ 14 PROCEDURES FOR ESTABLISHING HOMEOWNER OR HOUSING ASSOCIATIONS ......................................... 14 REQUIREMENTS FOR MUNICIPAL ENERGY PLANNING.............................................................................. 15 LEGAL AUTHORITY FOR MUNICIPALITIES TO BORROW AND TO USE MUNICIPAL ASSETS AS COLLATERAL 16 LEGAL AUTHORITY FOR ESCOS TO IMPLEMENT PROJECTS USING ENERGY PERFORMANCE CONTRACTING.
......................................................................................................................................... 18 SANCTIONS FOR WASTEFUL ENERGY PRACTICES .................................................................................... 18 ENERGY AUDITING REQUIREMENTS, SUPERVISION, AND CERTIFICATION OF AUDITORS .......................... 19 ENERGY TAXES ...................................................................................................................................... 20 SOCIAL SAFETY MECHANISMS PROTECTING VULNERABLE HOUSEHOLDS FROM THE TARIFF INCREASES . 20 3. POLICIES AND PROGRAMS ................................................................................................................................................... 23 ECONOMIC AND FINANCIAL INCENTIVES FOR EE MEASURES ................................................. 24 ENERGY EFFICIENCY FUNDS ................................................................................................... 25 VOLUNTARY AGREEMENTS .................................................................................................... 26 POLICIES FACILITATING IMPORT AND LOCAL MANUFACTURING OF EE MATERIALS .............. 27 PROGRAMS AND PROVISIONS FOR PROMOTING EE IN THE PUBLIC SECTOR ............................ 28 PUBLIC INFORMATION CAMPAIGNS PROMOTING EE ............................................................... 29 4. INSTITUTIONAL FRAMEWORK .......................................................................................................................................... 31 5. CONCLUSIONS AND RECOMMENDATIONS ................................................................................................................. 34 ANNEX I. COUNTRY COMPARISONS ................................................................................................................................................. 31 1. LAWS AND REGULATIONS .................................................................................................................................................. 32 1.1. EXISTING LAWS AND REGULATIONS CONCERNING ENERGY EFFICIENCY AND HEAT ........................ 32 1.2. REGULATIONS ON INDUSTRIAL AND POWER GENERATION: ....................................................................... 36 1.3. EE STANDARDS, CERTIFICATION AND LABELING FOR EQUIPMENT AND BUILDINGS ......................... 45 1.4. 1.5. 1.6. 1.7. 2. 3. REQUIREMENTS FOR METERING AND CONSUMPTION-BASED BILLING .................................................... 53 PROCEDURES FOR ESTABLISHING HOMEOWNER OR HOUSING ASSOCIATIONS ..................................... 58 REQUIREMENTS FOR MUNICIPAL ENERGY PLANNING ................................................................................... 63 LEGAL AUTHORITY FOR MUNICIPALITIES TO BORROW AND TO USE MUNICIPAL ASSETS AS
COLLATERAL ............................................................................................................................................................... 68 1.8. LEGAL AUTHORITY FOR PRIVATE SECTOR PARTICIPATION IN MUNICIPAL UTILITIES ........................ 73 1.9. LEGAL AUTHORITY FOR ESCOS TO IMPLEMENT PROJECTS USING ENERGY PERFORMANCE
CONTRACTING ............................................................................................................................................................. 77 1.10. SANCTIONS FOR WASTEFUL ENERGY PRACTICES ........................................................................................... 80 1.11. ENERGY AUDITING REQUIREMENTS, SUPERVISION, AND CERTIFICATION OF AUDITORS .................. 85 1.12. SOCIAL SAFETY MECHANISMS PROTECTING VULNERABLE HOUSEHOLDS FROM THE TARIFF
INCREASES .................................................................................................................................................................... 89 POLICIES AND PROGRAMS ................................................................................................................................................... 92 2.1. POLICIES, STRATEGIES, OR ACTION PLANS ESTABLISHING ENERGY SAVINGS GOALS FOR THE
COUNTRY AS A WHOLE AND BY SECTOR ............................................................................................................ 92 2.2. EE FUNDS, THEIR SOURCES AND ELIGIBILITY CRITERIA ............................................................................. 103 2.3. ECONOMIC AND FINANCIAL INCENTIVES FOR EE MEASURES.................................................................... 109 2.4. POLICIES FACILITATING IMPORT AND LOCAL MANUFACTURING OF EE MATERIALS ........................ 115 2.5. PROGRAMS AND PROVISIONS FOR PROMOTING EE IN THE PUBLIC SECTOR ......................................... 118 2.6. PUBLIC INFORMATION CAMPAIGNS PROMOTING EE .................................................................................... 126 INSTITUTIONS AND AUTHORITIES ................................................................................................................................. 131 3.1. GOVERNMENT INSTITUTIONS ............................................................................................................................... 131 3.2. NON-GOVERNMENTAL INSTITUTIONS ............................................................................................................... 143 ANNEX II. CONTACT INFORMATION FOR SELECTED INSTITUTIONS ............................................................................. 153 Alliance to Save Energy
U.S. Agency for International Development
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Abbreviations
ARCE
ASE
BEEF
BIH
CEB
CEE
CHP
DH
DSM
EAR
EBRD
EDS
EE
EIB
ESCO
EU
EUR
FEMIP
FREE
GEF
HCA
HEP
HOA
IBRD
IEA
IFI
LTA
MACEF
MUNEE
NG
PPA
PPP
PSP
KfW
RE
REECL
RES
SEE
SEEA
SFESD
SME
TRV
UNDP
UNMIK
USAID
USD
VAT
WB
Agentia Romana pentru Conservarea Energiei (Romanian Agency for Energy
Conservation)
Alliance to Save Energy
Bulgarian Energy Efficiency Fund (also referred to as BgEEF)
Bosnia and Herzegovina
Council of Europe Development Bank
Central and Eastern Europe
Combined Heat and Power (also referred to as cogeneration)
District Heating
Demand Side Management
European Agency for Reconstruction
European Bank for Reconstruction and Development
Energy Development Strategy
Energy Efficiency
European Investment Bank
Energy Service Company
European Union
European Union Currency Euro also marked as €
Facility for Euro-Mediterranean Investment and Partnership
Romanian EE Fund
Global Environment Facility
Heat Cost Allocator
Hrvatska Electro Priveda (Electricity Company of Croatia)
Home Owner Association
International Bank for Reconstruction and Development
International Energy Agency
international financial institution
long-term agreements
Macedonian Center for Energy Efficiency
Municipal Network for Energy Efficiency
natural gas
power purchase agreements
Private – Public Partnership
private sector participation
Kreditanstalt für Wiederaufbau (German Development Bank)
renewable energy
Residential Energy Efficiency Credit Line
renewable energy sources
Southeast Europe
Serbian Energy Efficiency Agency
Special Fund for Energy System Development
Small and medium enterprises
Thermostatic Radiator Valve
United Nations Development Program
United Nations Mission in Kosovo
United States Agency for International Development
United States dollar (also marked as US$ or simply $)
Value Added Tax
World Bank (International Bank for Reconstruction and Development)
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U.S. Agency for International Development
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Measurement Units
GWh
giga watt hour
kW
kWh
MW
kilo watt
kilo watt hour
megawatt = 106 watts
MWh
t.c.f.
t.o.e.
megawatt hour
tons of conditional fuel
tons of oil equivalent
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Executive Summary
The growing energy prices and pressure on the environment have motivated the
development of energy efficiency policies in most countries. The Southeast European
(SEE) countries were not an exception. The transition to a market economy could not
guarantee efficient use of energy; hence policies and regulations had to step in to correct
the market failures. Some of the countries analyzed in this paper have better capacities for
implementing such regulations, including the Republic of Bulgaria, Romania, the
Republic of Croatia1 and recently Ukraine. Others have been reforming aggressively and
are on their way to creating the legal and institutional capacities for promoting energy
efficiency (EE) in their countries. These include the Republic of Serbia, the Former
Yugoslav Republic of Macedonia, Moldova, the Republic of Montenegro and the United
Nations Mission in Kosovo (UNMIK), but need substantial capacity strengthening to
complete the development of the EE legal and regulatory framework, as well as the
enforcement institutions. As for other countries in the region studied, energy efficiency
has yet to make its way into the policy priorities of Albania, Republic of Georgia, and
Bosnia and Herzegovina.
Legal and Regulatory Framework
Energy efficiency laws, strategies and action plans, based on bottom-up assessment of the
cost-effective sectoral energy efficiency potentials, serve as the foundation for the
promotion of energy efficiency, which if combined with adequate regulatory measures
can foster investments in energy efficiency. Albania, Bosnia and Herzegovina, Moldova
and Georgia will need most efforts and resources to develop adequate legal and
regulatory framework for the promotion of energy efficiency. These countries need to
introduce or upgrade technical standards and norms for minimum efficiency, building
codes, certification and labeling procedures. These should base on the foundation of
detailed energy sector statistics to allow informed decision-making. Adequate regulations
would also allow enrolling private sector help in energy generation and supply. The
Romanian and Bulgarian experiences show that leasing, concessions, partial privatization
and other PSP schemes can support local authorities in restructuring and modernization of
energy intensive utilities in other countries as well.
In addition to the above legal and institutional solutions, the former Yugoslav Republic of
Macedonia, the Republic of Albania, the Republic of Georgia, Bosnia and Herzegovina
and the Republic of Croatia need energy efficiency funds, performance contracting as
well as legal authority for municipalities and housing associations to borrow, to
encourage energy efficiency investments the national policy framework.
There is lack of incentive programs in virtually all countries surveyed. There is
substantial need for additional measures to accelerate the EE market, such as voluntary
agreements, import and production incentives for EE products and appliances, as well as
programs and provisions for promoting energy efficiency in the public sector.
One of the biggest drivers of energy efficiency is the imperative for cost-recovery tariffs
that can ensure profitable and sustainable operation of utility enterprises. Nonetheless, the
1
The EU integration has played a stimulating role in the energy efficiency policy reform in those three
countries due to the transposition of the European Directives into national legislation.
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social assistance programs should provide for targeted utility social assistance for lowincome households to protect them from rising tariffs. Of the assessed countries, only the
Republic of Bulgaria and Romania have developed such social assistance mechanisms.
Technical assistance is necessary to help governments make the transition from subsidy
funds to loan funds, which would become a long-term, self-sustaining financing
instrument accelerating energy efficiency investments.
Policies and Programs
Capacity building and awareness raising can accelerate the achievement of energy
efficiency objectives by introducing state-of-the-art technologies, successful institutional
models, innovative financing mechanisms, assisting in preparation of energy efficiency
projects, performance contracting deals. The Republic of Albania, Bosnia and
Herzegovina, Ukraine, Turkey, the Republic of Georgia, Moldova and the former
Yugoslav Republic of Macedonia lack programs raising public awareness about the
benefits and methods of EE.
Institutional Framework
Once the national policies and legal framework are in place, their enforcement should be
transposed on sectoral and local (community) levels through local energy plans,
technological standards, codes and incentive programs. Institutions necessary for their
effective implementation include designated government agencies, commissions and
NGOs, national analytic and statistical institutes, municipalities, consumer and business
associations, ESCOs and housing associations. Strong institutions can facilitate
implementation of policy measures as well as projects.
It is necessary to set up or strengthen such institutions and empower them to realize the
EE potential in the economies of their jurisdiction in all countries of the region. The
capacity strengthening need is especially strong in the EE institutions of Republic of
Albania, Bosnia and Herzegovina, Republic of Croatia, Ukraine, Republic of Georgia and
Moldova.
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1. Background and Methodology
Objectives
The present assessment is a joint effort between the United States Agency for
International Development (USAID) and the European Agency for Reconstruction
(EAR). It evaluates the energy efficiency policies enforced in the countries of Southeast
Europe (SEE) that are also Contracting Parties to the Energy Community Treaty as well
as the treaty’s observer countries – Ukraine, Moldova, Georgia and Turkey. The
assessment also examines the current capacity in these countries to comply with the
European Directive on end-use energy efficiency and energy services2 and meeting
national energy saving targets (9% indicative) by 2016. Based on the findings of this
assessment, its authors together with USAID and the EAR will identify the main needs
for capacity strengthening and technical assistance in the above countries.
Methodology, Data and Sources
In order to “take stock” of the current stage of penetration of energy efficiency policies
and promotional mechanisms in the countries studied, the research team for this
assessment collected information about the relevant legislative provisions, policy
instruments and institutional available and in place. The research team gathered data
directly from national-level institutions, in-country experts, and the leading literature on
energy efficiency in the studied region. The authors have used this information to assess
the stage of readiness and capacity of these countries to develop their respective national
energy efficiency action plans as directed by the Energy Community Ministerial Council
and the Energy Efficiency Task Force.3
The research team was divided into two sub-teams, one coordinated by USAID and one
coordinated by the EAR. The EAR team collected data from three of the Contracting
Parties (the Republic of Serbia, the United Nations Mission in Kosovo (UNMIK), and the
Republic of Montenegro) while the USAID team gathered data from the remaining
Contracting Parties and Observer Countries. The methodology used by each sub-team
was the same.
Each research sub-team circulated and completed a survey focusing on three key areas for
the stocktaking evaluation:
1. Legal and Regulatory Framework
2. Policies and Programs
3. Institutions
2
European Parliament Directive on Energy End-Use Efficiency and Energy Services, Articles 4(1) and
Article 14(2).
3
For more information about the European Energy Community, see www.energy-community.org.
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The information evaluated in this assessment comes primarily from the following
reputable sources, which carefully screened their data for quality and accuracy:
•
•
•
•
•
•
•
•
•
Interviews and consultations with the experts and organizations that participated
most actively in the USAID-Alliance to Save Energy Municipal Network for
Energy Efficiency (MUNEE) program, including Institute Hrivoje Pojar in the
Republic of Croatia, MACEF in the Former Yugoslav Republic of (FYR)
Macedonia, Eneffect in the Republic of Bulgaria, Alliance to Save Energy staff
and consultants in Ukraine, Moldova and Romania, the Albania-EU EE Centre in
the Republic of Albania; as well as state, municipal and non-governmental
partners in the countries.
MUNEE Regional Urban Heating Policy Assessment and respective Country
Assessments for the Republic of Bulgaria, FYR Macedonia, the Republic of
Croatia, Romania, Moldova, Bosnia and Herzegovina and Ukraine – 2005-2007;
MUNEE Residential EE and Low-Income Utility Affordability Study and
background research reports – 2005-2007;
EuroHeat & Power 2005 Country Survey;
International Energy Agency (IEA) Ukraine Energy Policy Review - 2006;
Online MUNEE resource library (www.munee.org) including its policy library
and analytical papers – 2001-2007;
EU legal library at http://ec.europa.int
Other web and published sources, such as websites of the studied countries’
ministries, national agencies, etc.
Input from the members of the Energy Efficiency Task Force of the Energy
Community.
As expected, not all Contracting Parties and Observer Countries possessed readily
available data on some of the key areas where information was necessary. The lack of
data resulted in some inconsistencies that limited the ability of the stocktaking exercise to
be as comprehensive as desired.
The following sections summarize the laws and regulations, policies and programs, and
institutions in each of the surveyed countries. The detailed description for each country is
presented in Annex I. Meanwhile, Annex II presents the contact data for selected
institutions active in the field of energy efficiency in the region.
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2. Legal and Regulatory Framework
In most of the surveyed countries energy sector reform already started in the 1990’s. With the
growing fuel scarcity, energy prices, import dependence and environmental concerns, energy
efficiency as well has become a major issue. The need for targeted legal and regulatory
instruments for energy efficiency arose when it became obvious that, regardless of the transition
to a market economy, the markets did not guarantee efficient use of energy resources. This need
for more efficiency was further accelerated by the growing demands for environmental quality
related to the greenhouse gas emissions from fuel combustion. Hence, regulations became
necessary to set minimum efficiency or maximum energy intensity standards, as well as to
monitor the energy consumption in various sectors of the economy. There was also a need to
evaluate the efficiency of energy consumption through energy audits, energy passports, and
energy labeling, and to promote energy-efficient management.
Where they exist, the energy efficiency policies received adequate legal and regulatory reflection
in most countries. While the effectiveness of enforcement may vary, the general objectives of an
energy efficiency legal and regulatory framework are the same in most countries. They are as
follows:
•
•
•
•
•
•
•
•
•
•
•
formalizing energy efficiency as a separate sphere of regulation,
liberalizing energy prices,
conceptualizing the state policy principles in the sphere of energy efficiency,
creating institutional structures for the promotion of energy efficiency, with allocated
skilled staff and budget,
assigning responsibility for promotion of energy efficiency on national, regional and
municipal levels,
defining the roles of various actors in promoting energy efficiency,
defining the technical benchmarks and performance standards for energy efficiency in all
areas of energy consumption (industries, buildings, transportation, etc.) and mandating
certification, equipment and appliance labeling,
creating mandatory or market-based mechanisms for energy saving, defining EE
incentives and/or sanctions for wasteful energy use,
creating regulations for demand-side energy management and auditing,
setting up the framework for energy services,
providing for financing mechanisms and fiscal incentives for energy efficiency
investments; etc.
The features of the energy efficiency policies in each country greatly depend on several factors:
the structure and development of the economy, fuel resource base and energy security, level of
affluence of the population, existing industrial structure, state of the environment, climate and
lifestyles, efficiency of current institutional capacities at the moment of launching the new
policies, as well as the commitment of the national governments to climate change mitigation
and sustainable development in general.
Promotion of energy efficiency requires a holistic approach with adequate laws and
corresponding government decrees and regulations, as well as the necessary institutional
structures within the general framework of the energy sector development. These laws and
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regulations must be based on long-term strategies and action plans with specific measures for
implementation of the policies and accomplishment of strategic targets.
The most successful legal frameworks operate on the synergy of a number of laws and
regulations (and rarely one large, overarching EE law, such as in Turkey) covering the full range
of areas dealing with energy efficiency. In most cases, energy efficiency provisions are also
incorporated in the housing, construction and spatial planning legislation; technical requirements
to products, standardization, public procurement; municipal budget management policies; etc. At
the same time, a substantial package of ordinances and bylaws accompanies EE legislation
addressing certification, auditing, establishment of EE financing instruments, energy
management, heat delivery, the electricity market, licensing, etc. In the region studied for this
assessment, the countries with such legal frameworks were the Republic of Bulgaria, Romania,
the Republic of Croatia.
In cases where even the most ambitious law was designed, but where no necessary revisions
were made in the respective spheres (i.e. housing and construction laws, etc.), and where no due
attention was devoted to the secondary legislation, the EE laws and strategies remained only on
paper.
The Republic of Albania, Bosnia and Herzegovina, Moldova and Georgia, regardless of
their pressing energy security issues, have yet to embark on this road of legal development
for the promotion of energy efficiency. Whereas Turkey has passed a sophisticated,
overarching energy efficiency law, its full-paced implementation is pending. In contrast, the
Republic of Croatia does not have separate energy efficiency legislation, however the Croatian
government compensates with an EE strategy combined with numerous targeted programs
implementing energy efficiency in various sectors. The Republic of Serbia as well does not have
an energy efficiency law, however substantive EE provisions are set forward by its energy law.
In the Republic of Montenegro, EE objectives are fixed in the country’s energy policy and EE
strategy, as well as an EE action plan; however further development of this framework will occur
in the planned EE law. FYR Macedonia as well as UNMIK need further development and
strengthening of their existing legal and regulatory frameworks for the promotion of energy
efficiency. Hence, further legal strengthening and development of the EE legal framework
is necessary also in FYR Macedonia, UNMIK, and the Republic of Montenegro.
Regulations on power generation
Exemplary regulations on power generation are those that provide incentives for combined heat
and power (CHP) and district heating (DH) enterprises by prioritizing heating options based on
economic, strategic, environmental, and fuel availability criteria, as well as energy security
considerations of the sovereign governments. Electricity production from renewable energy
sources (RES) should also be encouraged to reduce fossil fuel use and environmental pollution.
A robust energy regulatory framework has powerful tools (long-term purchase agreements, feedin tariffs, etc.) for guaranteeing long-term predictability of demand for such products and
boosting the market for electricity from CHP and RES.
Of the surveyed countries the Republic of Bulgaria, the Republic of Croatia and Romania have
effective regulations along the lines described above.
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The Bulgarian Energy Act of 2003 has provisions encouraging high-efficiency cogeneration and
electricity produced from renewable energy sources. These electricity sources are prioritized
through obligatory long-term purchase of such electricity by the public supplier or the supplier of
last resort. The Republic of Croatia’s Regulation on Minimum Share of Electricity Produced
from RES and Cogeneration sets this share at 5.8% of total electricity consumption (900 GWh
now, approximately 1050 GWh in 2010). The Croatian Tariff System for Electricity Production
from RES and Cogeneration allows for long-term (12-year) purchase agreements at an attractive
feed-in price. Romania as well has long-term purchase agreements (LTAs)4 and guaranteed gridaccess for CHP electricity.
The Serbian legislation differentiates for ‘privileged’ power producers, which produce electricity
with RES, waste, cogeneration or using capacity under 10MW, and aims to provide them with
market priority, subsidies, tax relief, customs exemptions and other relief. However, the
secondary legislation necessary for enforcement is not yet in place. In the UNMIK, guaranteed
full purchasing priority is given to similar producers based on a certificate of ownership issued
by the Energy Regulatory Office. In the Republic of Montenegro the EE Action Plan provides
for financial incentives (grants, co-financing) for investments in CHP and DH.
All the rest of the countries – Republics of Croatia, Albania, Moldova, Georgia, Bosnia and
Herzegovina, Ukraine and FYR Macedonia– with acknowledged need for high-efficiency
generation and utilization of RES need to consider prioritizing such energy in the local
electricity market, including attractive feed-in tariffs, within the context of the long-term
sustainable development of their respective energy sectors. Bulgaria, the Republics of
Serbia and Montenegro have to continue strengthening their legal framework in this area
as well.
Energy efficiency standards, certification and labeling for equipment
and buildings.
EE standards: Standards for energy performance indicate the maximum permitted energy used
for a specific product under normal operating conditions. Standardization is a resource-intensive
exercise where the standards are defined, followed by testing and description of energy
performance features of the energy consuming device. The equipment and appliances that do not
meet the minimum threshold cannot gain access to the market.
The Republic of Bulgaria, Romania, Ukraine and Turkey have extensive technical regulations
and norms in place limiting the permitted energy consumption of different appliances, equipment
and buildings. The compliance with such standards is usually the basis for energy labeling. This
process was driven by the EU Mandatory Labeling and Eco-labeling Directives.
The Republic of Albania, Bosnia and Herzegovina and Georgia do not have EE standards. In
Moldova EE standards are in place, but they lack enforcement.
Energy Labeling: Energy labels can be applied to appliances, equipment, and even buildings.
Appliance labels indicate the specific energy consumption of the appliance and its energy
efficiency in relation to the lowest and highest efficiency values in the given class of appliances.
Such labels may also indicate the possible environmental impacts and health and safety
warnings. Appliance labeling is particularly important in the countries studied considering the
growing saturation of households with electric appliances due to the general economic
4
It is noteworthy that the LTAs are a convenient tool for the producers in terms of revenue predictability, yet can be
quite inconvenient for the consumers and the regulator, in cases when the terms are not defined adequately to protect
the interests of the consumers. The oTerminating LTAs is an expensive undertaking and usually results in
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stabilization and wellbeing of the population. Energy efficiency standards and labeling facilitate
the ability of consumers to make informed choices when purchasing a new electric appliance, so
they can consider how much energy the appliance will use relative to similar appliances. On a
country-wide scale, appliance standards and labeling facilitate the reduction of household energy
use. The residential sector is the second largest energy consumer in most countries.
Energy labeling has become mandatory in some of the Eastern European countries, including the
Republic of Albania, the Republic of Croatia, the Republic of Bulgaria, and Romania. The
current labeling activities mainly cover electric appliances (these include but are not limited to
refrigerators, freezers, washing machines, tumble dryers, dishwashers, lamps, air conditioners,
baking ovens, etc.). The UNMIK has also started transposition of the EU Directive on Appliance
Labeling pending enforcement from 2009. In the Republic of Serbia electric appliance labeling
was recently proposed by the Serbian Energy Efficiency Agency (SEEA), and the Serbian EE
Action Plan also has provisions for energy labeling of appliances.
The Republic of Montenegro does not have a regulatory framework for energy labeling,
minimum performance requirements of energy systems and individual metering, technical
standards and associated measures for their implementation. Creation of such framework is
stipulated by the Energy Development Strategy (EDS) and the EE Action Plan by 2012. The
proposed Energy Efficiency Law should provide the legal basis for these regulations.
Building codes and certification: The Republic of Bulgaria and the Republic of Croatia have
passed all the technical rules and requirements related to building energy performance, including
diagnostics, auditing, certification, and technical performance in energy conservation and heat
retention. These modernized building codes provide for energy efficiency in the construction
phase. The EU directives on hot-water boilers, and refrigerators and freezers have been
transposed in both countries, including conformity assessments by accredited bodies and market
surveillance by the respective state inspectorates.
Romania and FYR Macedonia have also initiated building energy performance and certification
regulations, in adaptation to EU regulations. Transposition of the 2005 Framework Directive on
Eco-Design is pending in both countries. Ukraine has developed its own set of regulations in this
field in the last few years. Turkey only has a by-law on heat insulation in buildings that has been
in effect since 2000. Nevertheless, Turkey’s Energy Efficiency Law has attempted to transpose
the Directive on End-Use Efficiency and Energy Services, and its full enforcement will ensure
adequate promotion of building energy efficiency through adequate standards, codes and
certification. The UNMIK’s new Construction Law and the Kosovo Program for Energy
Efficiency and Renewable Energy Sources provide for more efficient thermal insulation
conditions for new buildings as well as envision development of an appropriate manual for
compliance with the legal provisions.
The Republic of Albania, Bosnia and Herzegovina and Moldova have not yet modernized their
building codes and no regulations promoting or mandating building energy efficiency are in
force. Georgia has only recently started work on modernizing building codes, which would
also require developing the necessary enforcement and monitoring mechanisms, as well as
institutional capacity. The Serbian legislation contains building codes, which need to be
updated, and future steps are envisioned by the Energy Strategy for the introduction of
building passports. Similarly, in the Republic of Montenegro, a new regulatory framework for
the energy performance of buildings is proposed in the Energy Efficiency Action Plan to be in
line with the EPBD (Directive on the energy performance of buildings 2002/91/EC). However,
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the process will be resource- and time-intensive and technical assistance could facilitate the
development and enforcement of the necessary legal and regulatory provisions.
Generally, the standards, codes and labeling practices have started but need further
development in FYR Macedonia, Albania, the Republic of Serbia, UNMIK and the
Republic of Montenegro, while Moldova, Bosnia and Herzegovina and the Republic of
Georgia are generally missing the key provisions and capacities for promoting buildinglevel energy efficiency with the above tools.
Requirements for heat metering and consumption-based billing
While electricity is metered and billed based on actual quantities consumed, heat energy from
centralized networks is often billed based on heated or occupied space, which does not create
incentives for heat energy conservation in the generation or distribution facilities, or in end-use.
Metering of the actual amount of heat produced and consumed allows consumers to avoid
payment for heat energy which has been lost in the distribution networks (if heat is metered on
the substation level) or in the internal building networks (if metering is done within the
apartments). The potential to reduce heat bills by reducing actual consumption encourages
residents to install and use thermal control valves (TRVs) to manage their heat consumption
within their dwellings. At the same time, consumption-based billing creates an incentive for the
heat suppliers to eliminate the losses and inefficiencies, because they can no longer pass the cost
of wasted heat on to consumers.
In the Republic of Bulgaria, Romania, the Republic of Croatia, the laws state that heat should be
metered on the sub-station level, as well as individually through heat cost allocators (HCAs).
Similar provision exists for hot water consumption. The quality of metering devices is also
regulated. The laws stipulate that the DH companies must implement sub-station metering, while
the individual (household-level) metering devices should be installed at the expense of the endusers. Thanks to demand-side management (DSM) measures in the above-mentioned countries
that give households the means to control their heat consumption, e.g. through TRVs, and the
flexible payment plans for the installation costs, more and more households are buying heat and
water meters.
In FYR Macedonia the law only provides for bulk metering (at sub-stations), and heat use is
charged per square meter of occupied space. In Moldova heat meters are installed at a “heat
installation division border” according to the contract, and household bills charge for heat
consumed on the household’s side of that border.
Heat metering and consumption-based billing provisions do not exist in the UNMIK and
the Republic of Montenegro. In Bosnia and Herzegovina the federal law stipulates
individual metering and consumption-based billing for heat consumed, but this was never
implemented. Since centralized heat supply is non-existent in Georgia and Albania, such
metering provisions also do not exist.5
Procedures for establishing homeowner or housing associations
The associations of housing owners, referred to as condominiums, housing associations, homeowners associations (HOAs), or cooperatives, play an important role in guaranteeing the efficient
energy use within their buildings. These associations, depending on the specifics of the housing
5
Georgia has only achieved metering of electricity consumption fairly recently.
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privatization process, were necessary to fill the niche of municipal housing maintenance
companies. The number of HOAs is growing rapidly throughout the region.
Nevertheless, the scope and quality of services they provide and functions they perform are the
key to assessing their effectiveness. It is noteworthy, that the legislation regulating HOAs in the
surveyed countries varies. In most surveyed countries, the legislation stipulates that the
condominium is only a management body and its board solely selects the contractors to whom
the various building-related service needs would be outsourced. In such cases, the role of
condominiums is limited to signing the contracts with the service providers, such as the heat
supply company, and then with the HOA members to serve as the intermediary and collect the
fees (fee collection can also be outsourced).
The Republic of Albania’s Civil Code, the Republic of Croatia’s Law on Property and Ordinance
on Buildings Maintenance, the Bulgarian Energy Act, the Moldovan Law on Privatization of the
Housing Fund and the Bylaw on HOAs, the Ukrainian Law on Associations of Owners of Multifamily Buildings, the Romanian Housing Act of 1996, and the Turkish Administration Plan of
the Immovable Property Ownership Law are all documents generally defining the procedures to
be followed by the residents of multi-family buildings as a voluntary union of apartment owners.
The types of procedures included are for: building management, building maintenance,
budgeting, governance of the associations, and in some cases also the provisions for contracting
utility services or borrowing for project implementation. The latter two areas can also be
regulated under separate legislation.
In FYR Macedonia private maintenance is the only option allowed by legislation, whereas in the
Republic of Bulgaria the HOAs have a choice between publicly or privately owned maintenance
companies. In other cases, such as Moldova, where the HOAs collect only very small fees, they
try to manage the building and other related property on their own. In UNMIK no adequate
procedures are in place.
When the private housing maintenance market is underdeveloped, the HOAs are left with the
heavy duty of developing projects, paying for and implementing them. Such projects may
include elimination of heat losses from the building envelope, installation of heat, hot and cold
water metering, balancing and regulating devices, etc. These measures can substantially reduce
the energy waste and represent cost-effective investments that in most cases pay back in less then
five years. In countries like Moldova, Georgia, Bosnia and Herzegovina, and the Republic
of Serbia, substantive energy efficiency improvements are still not realistic without external
financing, yet the legislation prevents HOAs from borrowing. Hence, the absence of
innovative financing mechanisms designed specifically for HOAs significantly hampers the
implementation of building EE measures. Moreover, additional technical assistance is
necessary for developing the necessary legal framework in countries where it is still nonexistent such as UNMIK and the Republic of Montenegro.
Requirements for municipal energy planning
Municipalities are responsible for territorial development and municipal energy planning. In
addition, municipal buildings, street-lighting and municipal energy utilities are large energy
consumers. To enable and encourage municipalities to tap their energy efficiency potential, they
need the incentive of knowing that they will be able to capture and use their energy savings.
They need energy management competence and significant financial resources, which are often
not available in the municipal budget. Many donor agencies have supported municipal EE
projects: UNDP funded preparation of illustrative local energy plans in the Albanian
municipalities of Korca and Maliq, USAID through its MUNEE Program funded software and
trainings for municipal energy management.
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One of the national policy instruments for promoting municipal EE is the municipal energy
planning requirement. The Bulgarian EE Act requires that the regional governors organize the
development and implementation of regional programs for energy efficiency in coordination
with the municipalities. It obligates municipal councils to adopt EE plans, and then mayors
should provide the budget resources for their implementation. Similar provisions for EE and RES
use exist in the Bulgarian Environmental Protection, Regional Development and Territorial
Planning Acts.
The Romanian legislation requires energy efficiency programs for large cities with over 20,000
residents, and mandates energy efficiency improvements in public buildings. The Croatian Law
on Energy requires large cities to address their energy needs in development plans in compliance
with the national Energy Strategy. The Republic of Montenegro EDS, the Energy Efficiency
Action Plan up to 2012 and EE Action plan for the Public Sector (2008-2012) provide for the
"Promotion of Energy Management Schemes at local level and capacity building," including
technical assistance for local energy managers as well as preparation of local energy plans. When
heat sector restructuring became an issue in Moldova, the Government developed 36 municipal
heat plans, which were implemented in some towns, although there is no legal requirement for
municipal energy planning. Municipal energy issues as described above are often a required
component of development plans and programs of local administrations and public enterprises
(e.g. as in FYR Macedonia).
Separate municipal energy planning provisions do not exist in Turkish, Croatian,
Ukrainian, Albanian, Moldovan, Bosnian or Georgian legislation. Draft administrative
instruction is pending in UNMIK for the establishment of municipal energy offices and
pursuit of EE and RES on the local level, which will require substantive technical
assistance.
Legal authority for municipalities to borrow and to use municipal
assets as collateral
Municipalities need funds for implementing their energy efficiency programs, which the
municipal budgets cannot fully provide for, even at the expense of subsidies from the central
budget. Additional resources can be borrowed through loans or issue of municipal bonds.
However, many countries’ regulations restrict municipalities’ ability to borrow to avoid potential
defaults, which can result in seizure of the municipal property and generate other additional
responsibilities for the state. In other cases, the municipal revenues are so small, and subsidies
unpredictable, that municipalities’ creditworthiness is not sufficient for commercial borrowing,
such as in FYR Macedonia.
In the Republic of Albania, the Republic of Croatia and the Republic of Georgia, for
example, there is no legal provision for municipal borrowing. In countries where
municipalities can borrow, the legislation spells out certain limitations on types, purpose,
duration and size of loans, to reduce the risk of defaults. In the Bosnian Republic of Srpska the
Law on Local Government enables cities to take out bank loans (Law on Budget
Implementation) as long as they do not exceed 20% of the municipal budget revenues. In Bosnia
and Herzegovina, cantons and municipalities are also free to borrow (Organic Budget Law). But
conditions differ from canton to canton according to the respective legislation on local selfgovernment. Bulgarian law (i.e. Law on Municipal Borrowings of 2005, Municipal Budgets Act
of 1998 and Municipal Debt Act of 2005) allows both long-term and short-term borrowing
differing in purpose. Municipal borrowing may be collateralized in virtually all ways allowed
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under Bulgarian law (including registered pledges and floating charges); public municipal
property, though, cannot serve as collateral. In Romania, there are special targeted funds for
municipal lending.
The Moldovan legislation (Law on Local Public Finances № 397-XV) allows municipal
borrowing, yet limiting it to one budget year and to 5% of the annual municipal revenues, which
in most cases is unacceptable for energy efficiency projects which have longer payback periods.
The exceptions are the larger cities of Chisinau and Balti. Turkey’s Municipality Law No. 5393
has a range of provisions for municipal loans and bonds for financing investment projects. Only
recently in the Ukrainian legislation was modified to open the ban on municipal borrowing, as
well as allowing to redirect the saved funds resulting from energy efficiency measures.
Legal authority for private sector participation in municipal utilities
Under heavy pressure from growing fuel prices, the need to improve energy efficiency has
become a challenge for public utilities, which do not always possess the knowledge and
resources for the necessary upgrades and restructuring. Under such circumstances the
experience of the Central and Eastern European countries shows that when public utilities are in
desperate need for cash and investment capital, are poorly managed by municipal staff, provide
meager service and insufficient cost recovery, and lack transparency, private sector participation
can be the key to improvement. This is particularly the case in the municipal district heating
enterprise, electric networks or electricity generation (mainly small-scale). Private sector
participation (PSP) can take many forms: full or partial privatization, concession, long-term
management contract, or other similar forms of public-private partnership (PPP). Municipalities
are burdened with many responsibilities and the advantages of passing the burden for providing
utility services to private companies are many. Private sector service providers are often better
capitalized and able to implement development projects, and they may have better business
expertise. Private operators may also have better management practices that enable them to
capture cost savings, and to charge retail tariffs that are both cost-recovery and competitive
(where competition exists).
The PSP requires a certain legal framework stipulating the numerous provisions for privatization,
organization of public bidding over utility assets, concession contracts, etc. Adequate
regulations, administrative models, and institutions will enable recruitment of the private sector’s
help in energy generation and supply. The experience in the countries studied shows that leasing,
concessions, partial privatization and other PSP schemes can support local authorities in
restructuring and modernization of energy intensive utilities.
The Bulgarian and Romanian laws are the most open for PSP, as there are virtually no
limitations on any form of PSP for energy utilities. Most of the DH utilities have already been
taken over by private operators under lease or concession contracts. The Croatian legislation
allows for concessions in the municipal heating services for a period of up to 30 years.
The Albanian legislation only allows private sector participation in small (<5MW) independent
power generation. In the Republic of Montenegro, Republic of Serbia, Ukraine and FYR
Macedonia PSP is theoretically possible in municipal utilities, however it rarely happens in
practice. Concession legislation is in place in UNMIK. There is need for additional efforts
to cultivate PSPs and PPPs in these countries.
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Bosnia, Moldova, Turkey and the Republic of Georgia have no legislative or institutional
capacity to open for private sector participation. Privatization and consequent regulation
of the emerging private market is a challenge which requires adequate legislation and
institutional capacity. Hence, there is a need to develop the adequate legislative framework,
and create and train the institutions necessary for the facilitation and regulation of PSP in
the energy sector.
Legal authority for ESCOs to implement projects using energy
performance contracting
One creative solution for improving the efficiency of energy use is performance contracting with
energy service companies (ESCOs). ESCOs and third party financing have proved efficient and
sustainable financial ways to restore and develop utility systems and infrastructure with greater
energy efficiency.6 However, to allow for real performance contracting to happen in the public
sector, the legislation should allow for the project beneficiary (the building or facility owner) to
accumulate the energy savings, for consequent payment of the ESCO’s services. However, in
most cases the legislation does not allow the public entities (municipalities, schools, etc.) to
accrue savings, instead the allocation of public funds for energy costs are reduced for the
consequent years, thus leaving no incentives for energy conservation.
The relevant legislation (e.g. in the budget laws, public procurement, etc) and capacity for
ESCOs and performance contracting is still missing in the Republic of Albania, Bosnia and
Herzegovina, Republic of Georgia. In Romania, the Republic of Croatia, FYR Macedonia,
the Republic of Montenegro and UNMIK no legal framework exists for ESCOs and
performance contracting, but the national governments have undertaken the initial
administrative steps for creating the necessary legal environment. In the Republic of
Bulgaria, on the contrary, the legal provisions are in place, but there are no real ESCOs on the
market. In Bosnia and Herzegovina there is only one company using the ESCO concept in a
small scale boiler biomass heating project, but lately a number of other ESCO projects have
taken place. The involvement of ESCOs is easier in the private sector, where ESCOs can be
recruited through a service contract.
The recently passed EE Law in Turkey that is pending implementation stipulates the role of
ESCOs and energy management, together with a number of supportive provisions, such as
obligatory audits, building codes, obligation to employ energy managers, etc. In all countries
studied for this assessment, technical assistance is necessary to create a not only the legal,
but also a favorable institutional environment in which an ESCOs market would develop.
Sanctions for wasteful energy practices
Sanctions are an outdated tool of command-and-control regulations, but in healthy combination
with market-based incentives, sanctions can help avoid wasteful energy use.
6
Energy Performance Contracting is financing mechanism that allows paying for the cost of the energy efficiency
project (equipment and installation work) from the cost of reduced energy. Normally offered by ESCOs, that
become the third party financiers (TPF) of such projects, performance contracting allows achieving energy
conservation without requiring funds from the facility or building owners. ESCOs are businesses that design, build,
install, finance, and maintain projects designed to provide energy through energy generation and/ or reduced
demands.
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For example, in Romania there are hefty penalties (from 1 million up to 15 million lei) and
confiscation of assets in cases of noncompliance with EE requirements in the national legislation.
In Ukraine, where the national policy is still heavily affected by the policy models of a planned
economy, the building codes, norms, and standards serve as the basis for imposing economic
sanctions for inefficient use of fuel and energy resources, and production of inefficient
appliances and equipment. When normative indicators of weighted energy losses are exceeded,
enterprises shall be charged an energy fee in the amount of 200% of the cost of over-consumed
resources except for the energy received from the renewable energy sources. Another former
planned economy – Moldova – has certain legal provisions in place for sanctions, but they are
not enforced. In most countries there are sanctions for failure to provide the energy consumption
data necessary for statistical reporting. In the Republic of Bulgaria, the legislation provides for
various fines for different violations in the process of energy inspections (audits), certification
and implementing their recommendations (failure to provide appropriate access, disclosing
confidential data, failure to fulfill the requirements of audits). Turkey’s new EE Law also
contains such provisions which are pending implementation.
There are no such sanctions in Bosnia and Herzegovina, the Republic of Croatia, Georgia,
the Republic of Montenegro, UNMIK, the Republic of Serbia or FYR Macedonia. In
Moldova there is a legal provision for the application of sanctions against enterprises, institutions
and organizations for wasteful consumption and direct energy losses, but there is no
enforcement. Such sanctions are necessary for enforcement of energy efficiency standards,
especially if market instruments such as labeling and certification are not in place.
Energy auditing requirements, supervision, and certification of
auditors
Energy auditing, as an assessment of any facility’s or building’s energy efficiency potential, is
often a subject for state regulation, which defines and controls the structure of energy audit
reports, procedures, as well as the qualifications of auditors. The energy auditors in many
countries have to possess a certain educational background and work experience, and get
certified by the state. While energy auditing is a practice which any consumer should be
independently interested in for reducing his energy bill, in many countries such audits are also
made mandatory for the energy intensive consumers.
In the Republic of Bulgaria, Romania, Ukraine and Moldova, energy audits (or energy efficiency
inspections) are mandatory for large energy users, and if wasteful energy use is discovered,
compulsory EE measures are prescribed for implementation. The procedures, means and
substance of the energy audit are regulated by law, and can be conducted by licensed experts.
Similar provisions exist in Turkey’s new EE Law which is pending implementation. In the
Republic of Albania and FYR Macedonia, energy audits are not mandatory, but their procedure
and the licensing of auditors are regulated by the state. In FYR Macedonia provisions exist for
licensing of energy auditors. In Croatia the technical regulation concerning energy economy and
heat retention in buildings7 was partly transposed – the first step in the process of implementing
Directive 2002/91/EC on the energy performance of buildings. As a result local agencies have
already financed about 40 audits. In the Republic of Montenegro the uptake of energy audits by
the market is facilitated by technical assistance funded by the Norwegian government. The
UNMIK Law on Energy and the draft Administrative Instruction on End-Use Energy Efficiency
7
OG 79/05 and 155/05
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and Energy Services include requirements for energy audits in the public sector and rules for the
supervision, qualification and certification of energy auditors.
Energy audit regulations do not exist in Bosnia and Herzegovina and the Republic of
Georgia. In the Republic of Serbia the energy audits will be regulated by the Law on
rational energy use and respective secondary legislation scheduled for adoption in 2009.
Energy Taxes
The Croatian legislation imposes energy excise taxes on all liquid fuels, and 22% VAT on all
forms of energy and fuels. In Ukraine there are surcharges on the effective tariffs for electricity
and heat, except for electricity produced by cogeneration plants. There is also a surcharge on the
approved tariff for natural gas for all consumer groups, royalties for producing oil, natural gas
and gas condensate, for natural gas transit and for transportation of oil through main oil
pipelines, and fees for exploration activities. Energy taxes also exist in Romania and Moldova.
Energy taxes can contribute to the implementation of the national policies on energy efficiency
(the accrued resources could be directed to a separate fund targeted to EE project financing).
Social safety mechanisms protecting vulnerable households from the
tariff increases
Utility restructuring and energy reform cannot proceed without elimination of general subsidies
and cross subsidies, which distort the market and contribute to inefficient energy use.
Nonetheless, elimination of subsidies without a well-designed social safety net to compensate
could have critical impacts on low-income households. Substituting heat subsidies with targeted
assistance for low-income families has generally been the best practice in countries in the
advanced stages of heat sector reform.
Romania still has untargeted subsidies for customers using NG and DH, and has introduced
targeted “heat assistance payments” for the same two energy services, plus wood and coal
consumption. While FYR Macedonia does not have special utility-related social aids, nonpayment tolerance serves as a form of subsidy. Bosnia and Herzegovina and the Republic of
Albania still have untargeted, general heat subsidies.
In the Republic of Croatia, the electric utility's 10% revenues go for low-income households
through the municipalities. Heat and energy subsidies and cross-subsidies at various levels still
remain in Ukraine with below cost-recovery DH tariffs, cross-subsidies between
residential/public and industrial tariffs for electricity and natural gas. Similarly, subsidies for
NG and DH remain in Moldova, and electricity tariffs are below cost-recovery levels, while there
are remaining cross-subsidies for NG (industrial and power sectors paying more than
households). Cross-subsidies for electricity and gas prices are stipulated by the Turkish
Electricity Market Law No.4628, Article 13; nonetheless, it is planned to pass to cost-based
energy pricing. The UNMIK government spends about 4.0 million euro per year on subsidies to
low-income customers through a direct payment to the electric company.
The only one of the surveyed countries where no general subsidy exists is the Republic of
Bulgaria, which has switched to targeted heat and electricity assistance programs for
vulnerable households. Some utility assistance programs include the Winter Heat Assistance
Program; low-income EE lighting program; soft loans and co-financing for low-income
household EE projects; and various grants for EE equipment installation costs (mainly referring
to metering and control equipment).
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The following Table 1 provides an at-a-glance description of the existing laws and regulations
concerning energy efficiency and heat.
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Table 1. Existing Laws and Regulations Concerning Energy Efficiency and Heat
ROM BLG
UKR
CRO
TRK
Country / Question
Legislation
Regulations on high-efficiency power
generation.
Energy
efficiency
standards,
certification and labeling for equipment
and buildings.
Requirements for heat metering and
consumption-based billing.
Sanctions for wasteful energy practices.
Energy
auditing
requirements,
supervision, and certification of
auditors.
Social safety mechanisms protecting
vulnerable households from the tariff
increases.
Energy taxes
Procedures for establishing HOAs,
allowing them to contract for utility
services, and borrow for projects
Requirements for municipal energy
planning and restrictions on use of heat
sources not consistent with the plans.
Legal authority for municipalities to
borrow and use municipal assets as
collateral.
Legal authority for private sector
participation in municipal utilities.
Legal authority for ESCOs to
implement projects using energy
performance contracting.
++
+
+~
~
MCD
ALB
MLD
BIH
GEO
SRB
-
-
+
+
+ ++
++ +~
+ ~ - +~ ~
- ~ -
-
+
+
-
+
+
-
-
~
+~ +~
++ ++ ++ - + + + ++ + ++ ++ ++ ++ - +
++ ++ ++ ++ ++ +
+ ++ + ++ +~ +
+ ++ ++ - +~ ++ ++ +
+ +~ + +~ +
-
MNE
+~
++
-
++ ++ - + +
+ - + ++ -
-
- ++ + - ++ ++
- ++ - - -
++ ++ + ++ +
-
~ ++ ~ + ++ +~ +~
++ +
+
-
~
- +~ +
+~ +
- ++ + - +
-
+ + - ++
- ~ - +
+
+
~
-
+~ +~
~
- ++ +~
- ++ +
+~ +
-
+
-
+~ +~ +~ -
~
Fully Implemented: Development in this area is advanced and necessary capacities are in place
Partially Implemented: Development has started, legislation and some capacity is in place, further legal and capacity advancement still necessary
Planned but not implemented: Legislation is in place, is fairly recent and implementation is pending
Nothing: No legislation and/or capacity is in place, need for both legal and capacity development
Legislation has been in place for a substantive amount of time, but implementation failed.
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+
+
-
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3. Policies and Programs
One of the most effective tools to encourage energy efficiency investments is a comprehensive package
of policies declaring the objectives of the state that should be pursued, backed by the funds needed to
implement those policies. Typically an energy efficiency policy strategy outlines the priorities and the
trends to be followed, while an action plan indicates the specific measures to be implemented, as well as
the corresponding timeframes, responsible entities, funding mechanisms, and the expected results in the
form of national EE targets. At the same time, as part of an effective and comprehensive policy package,
targeted programs are established to eliminate market failures, address social issues, develop replicable
models and test technical solutions in specific, narrower areas or sub-sectors.
The EE policies also need to designate and authorize respective institutions for bringing the policies to
life, which will be discussed in the following section on institutions. Needless to say, the success of any
policies and programs greatly depends on the availability of financial resources to sustain the policy
administration and implementation.
For many of the Energy Community’s Contracting Parties, the EU Directives on EE form the basis for
national-level regulations and policies. This is the case in Romania, Bulgaria, Turkey, Croatia and
UNMIK, to name a few examples.
In addition to laws, the Romanian and Bulgarian governments have EE strategies, EE action plans,
national EE programs and targeted sector-specific EE programs for transportation, buildings, utility bill
reduction, etc. In the UNMIK the Energy Law also sets the framework for energy efficiency policy and
the transposition of the EU Directive on End-Use Energy Efficiency and Energy Services. In addition to
the law, the UNMIK Program for Energy Efficiency and Renewable Energy Sources (KPEERES) 20072009 was adopted in 2007. Usually, the Government would first develop its EE strategy, outlining the
key priorities of the national EE policy, then develop the law, defining the areas of regulation, followed
by the development of a national program with specific measures for achieving the objectives set by the
EE strategy in the areas described by the EE law. To conclude, the EE action plan would lay out the
detailed activities, timeframes and financing sources for the implementation of EE promotional
activities. Nonetheless, the sequence may vary depending on the timeframes of each of these policy
documents (short-, medium- or long-term).
In FYR Macedonia the role of the aforementioned documents is filled by the Program for Rational Use
of Energy until 2020 and the Energy Efficiency Strategy until 2020 adopted in October 2004. In
Moldova, the National Program on Energy Conservation for the period 2003-2010, the Energy Strategy
to 2020 and pending National Energy Efficiency Program stipulate the intentions of the state for the
promotion of EE. The Government of the Republic of Serbia adopted the Energy Sector Development
Strategy of the Republic of Serbia by 2015 with its respective Implementation Program for the period
2007-2012.
The Montenegrin Energy Law (2003) and the associated Energy Policy for the Republic of Montenegro
(2005), Energy Development Strategy of Montenegro up to 2025 and EE Strategy define the broad
responsibilities of the Ministry for Economic Development (formerly the Ministry of Economy)
regarding Energy Efficiency and Renewable Energy in Montenegro. EE action plans for 2008, 2008-
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2012; and for the Public Sector (2008-2012) as well as the Market Study and Strategy for Space
Heating, Cooling and EE in the Residential Sector define the specific measures for implementation of
the national policy in their respective areas. In Ukraine, in addition to general energy and heat sector
laws, there is an Energy Strategy to 2030, Comprehensive State Program on Energy Conservation until
2010, Comprehensive State Program on Energy Conservation 2007-2020 is in the development process,
etc.
In January 2007 the government of the Republic of Serbia adopted the Energy Sector Development
Strategy of the Republic of Serbia by 2015 and its Implementation Program for the period 2007-2012.
Bosnia & Herzegovina and Georgia are the only two countries among those surveyed that do not
have an energy efficiency strategy, program or action plan. The only framework policy in Bosnia &
Herzegovina in this area is the general energy sector strategy, which has had slow progress and is
temporarily on hold. In some cases (e.g. in Bosnia & Herzegovina and Ukraine) the niche for national
policies is filled with international legislation or treaties, such as the EU Directives or the Energy
Charter Treaty.
Economic and financial incentives for EE measures
Economic and financial (fiscal) incentives are necessary to promote investments in energy efficiency.
These can take the form of soft loans, special purpose funds, subsidies, tax exemptions, and rebates on
energy efficient products among other options.
Romanian legislation provides for a customs tax exemption for importers of EE equipment. The
Bulgarian legislation allows for grant financing up to 15% over the credit borrowed from an energy
efficiency and RES credit line. In the Republic of Croatia, according to an amendment to the Energy
Act, incentives are provided for the use of renewable energy, energy efficiency and cogeneration.
The Ukrainian legislation has a range of economic incentives:
•
Tax incentives for EE & RE equipment producers,
•
•
Priority credits, subsidized interest rates for EE investments,
Tax benefits for RE applications,
•
Customs duty exemptions on EE, ES and RE equipment and components,
•
Profit tax exemptions on investments for expansion of EE&RE equipment production.
To promote small-scale energy generation, in Moldova the energy generation companies with generation
capacity not exceeding 20 MW are allowed to sell their excess power at market prices. In FYR
Macedonia the Sustainable Energy Financing Facility assists developers (municipalities, companies,
etc.) of EE projects with guarantees and debt financing.
Albania, UNMIK, Georgia, Montenegro, Serbia, and Bosnia & Herzegovina do not yet have any
economic or fiscal incentives for the promotion of energy efficiency. In the Republic of Montenegro
such incentives are proposed for future implementation under the Energy Efficiency Action Plan, and
will also be defined by the future EE law. The Turkish Energy Efficiency Law was only passed in
February 2007 and is pending implementation. After full enforcement, there will be subsidies for R&D
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projects, EE training, audit and consulting services for small and medium sized enterprises (SMEs);
free-of-charge certifications for energy managers of foundations (and other non-profit organizations);
and licensing exemption for high-efficiency cogeneration facilities, micro cogeneration, RE generation
under 200kW; etc.
Energy Efficiency Funds
Many governments claim that lack of financing is a major barrier to the implementation of energy
efficiency, despite the strong policies and competent institutions. Many countries’ legal frameworks
already contain provisions for energy efficiency funds, but in many cases the funds have not been
established, or the funds that were created do not possess sufficient resources to implement substantive
projects. The governmental funds usually offer grants that are subsidized by the state budget. The more
common form of fund, gradually gaining popularity throughout the region, is the loan fund (or revolving
fund) or facility, which would invest only in bankable projects, recover the invested capital and make
the funds repeatedly available through a “revolving” mechanism.
Energy efficiency funds are often established with some share of public funding as well as with help
from donors and international financial institutions (IFIs) such as GEF, WB, USAID, EBRD, etc. .
Another option is for the funds to work with the commercial lending sector and gradually attract banks
and other lending institutions into the energy efficiency financing market, and offer financing with
conditions appropriate for energy efficiency projects. Alternatively, the public and IFI funds can be
provided to selected banks to carry out lending in the designated area (be it multifamily residential
buildings, or schools and hospitals, etc.), thus utilizing the institutional capacity and expertise of the
banking employees as well.
The most successful EE fund among the surveyed countries is the Bulgarian Energy Efficiency Fund
(BgEEF) that was established through the Energy Efficiency Act adopted by the Bulgarian Parliament in
February 2004. Its major donors are: the Global Environment Facility through the International Bank for
Reconstruction and Development (the World Bank) - USD 10 million; the Government of Austria - Euro
1.5 million; the Government of the Republic of Bulgaria - Euro 1.5 million; and, several private
Bulgarian companies. BgEEF is available to: municipalities, corporate entities and private clients. It
requires up to a 25% equity contribution and will finance projects with up to a 5 year payback. In
addition to BgEEF, three other funds successfully operate in the Republic of Bulgaria: (1) Kozloduy
International Decommissioning Support Fund; (2) the European Investment Bank (EIB) / Raiffeisen
Bank credit line (oriented to finance municipal infrastructure) and (3) the Residential Energy Efficiency
Credit Line (REECL). Aside from pooled financing, the keys success included (i) a requirement for cofinancing; (ii) at least half of the project's benefits should come from measurable energy savings; (iii)
application of well-proven energy saving technology; (iv) payback under five years; etc.
Similar funds exist in Romania, such as the Romanian EE Fund (FREE), established by the Grant
Agreement signed between the Romanian government and the International Bank for Reconstruction
and Development (IBRD), with funds from the GEF. Other EE financing is available in Romania
through the Special Fund for Energy System Development (SFESD) and the Environmental State Fund.
In all cases, the funds are established to facilitate the implementation and effectiveness of national
policies aiming to improve the uptake of EE and RES. In all cases, such EE funds are created as a joint
effort of national governments and IFIs, and they typically offer financing at close-to-market rates.
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In 2006, the European Commission decided to establish two multi-beneficiary programs on energy
efficiency, together with the Council of Europe Development Bank (CEB) in co-operation with
Kreditanstalt für Wiederaufbau (KfW) and the European Investment Bank. The projects will cover the
Republic of Bulgaria, Romania, the Republic of Croatia and Turkey. Both projects aim at providing
financial assistance to the new EU Member States and candidate countries in increasing investments in
energy efficiency. The total budget of the Energy Efficiency Finance Facility is € 145 million (€ 29
million EC contribution + € 92 million CEB/KfW + € 24 million EIB).
The EU Commission also approved the establishment of the Facility for Euro-Mediterranean Investment
and Partnership (FEMIP) support fund for Turkey in 2005, financing technical assistance activities
complementary to EIB operations. The total budget is € 3 million, 50% of which is allocated for
infrastructure related projects. The fund can be used as a tool to support large scale EIB interventions in
the energy area as well.
In the Republic of Croatia there are extra-budgetary funds that finance EE. A small revolving fund is
operated by the Energy Efficiency Center (EEC) in Georgia, and a larger US$38 million facility launch
is underway with an EBRD credit line for financing energy efficiency projects. The Montenegrin EE
State Fund for implementation of Annual Energy Efficiency Action Plans was established in 2006 as a
separate line item in the state budget. In FYR Macedonia donor funding for energy efficiency projects is
available from the IBRD/GEF and USAID.8 Article 13 of Law of Ukraine on Energy Conservation
stipulates for establishment and disbursement procedures of Energy Efficiency Funds with concurrence
from the Cabinet of Ministers, and on the local level – by appropriate local councils. However, the
Cabinet Decree providing the regulations for such a fund was canceled in 2000 by another Decree.9
In Moldova the RE Law under preparation at the time this assessment was published also proposes
creation of a revolving fund that will be created with public, private and IFI contributions. In FYR
Macedonia the GEF Sustainable Energy Program is developing the Sustainable Energy Financing
Facility with co-financing from the Macedonian Bank for Development Promotion (MBDP). Bosnia &
Herzegovina, UNMIK, Albania and Serbia are also in desperate need of energy efficiency
investments, but do not have appropriate funds or substitutes of these, despite the provisions in their
National Energy Strategies.10
Voluntary Agreements
Voluntary agreements allow manufacturers to phase out energy inefficient products from the market
gradually and by choice, allowing manufacturers to follow a flexible schedule of compliance with
minimum efficiency requirements. With the important exception of Ukraine, in the surveyed
countries there are no policy provisions for promoting voluntary agreements and/or other marketoriented schemes.
8
PEEREA 2006a.
On February 7, 1996 the Cabinet’s Decree # 163 was issued which adopted the Regulations on the National Extra-budget
Energy Conservation Fund. On March 16, 2000 another Cabinet’s Decree cancelled the former one.
10
The Energy Sector Development Strategy of the Republic of Serbia by 2015 Implementation Program for the period 20072012 foresees establishment of the Energy Efficiency Fund which is not yet in place.
9
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U.S. Agency for International Development
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As a result of voluntary agreements the inefficient appliances are first phased out from the countries
with high efficiency standards, while remaining in other countries more tolerant to inefficiency due to
lower economic welfare and milder regulations. In other words, the less efficient appliances phased out
from the EU countries may appear in the Southeast European countries. Integration of voluntary
agreements into the policy toolbox of the SEE countries is necessary to promote compliance with the
minimum efficiency standards. These should be combined with policies facilitating production and
import of energy efficient materials and equipment, which do not yet exist in the surveyed
countries, except Romania.
There are no incentives for providers of energy efficiency services (e.g. ESCOs, installers of EE
equipment, energy advisors, auditors and energy consultants) in any of the surveyed countries.
Policies facilitating import and local manufacturing of EE materials
Policies providing incentives, equal competition and a level playing field for EE product and service
providers are critically important to cultivate a healthy EE market. They need to have the ability to
make a living by providing energy services, energy audits and energy efficiency improvement measures.
In the Republic of Croatia a GEF/WB project has provided mixed grant and loan financing to the local
HEP11 ESCO. In UNMIK the draft Administrative Instruction on End-Use Energy Efficiency and
Energy Services includes a provision promoting ESCOs, as well as qualification requirements and
certification schemes for energy auditors.
In Romania the Romanian Energy Conservation Agency (ARCE) and the Berlin Energy Agency are
working to introduce the legal framework for energy performance contracts (EPC), which would form
the legal basis for ESCO activities in Romania. Meanwhile, a Ministerial Ordinance stipulates the
procedures for certification of energy auditors and managers.
The Energy Sector Development Strategy of the Republic of Serbia by 2015 Implementation Program
for the period 2007-2012 foresees the development of national regulations on the conditions for
operation of ESCO companies as well as for the introduction of an energy passport system in buildings.
The Ukrainian Government has introduced measures for opening the housing maintenance market to
private competition, including to ESCOs. The legislation also provides for customs duties exemptions
for RE and EE equipment, control and measurement equipment (e.g. thermal regulation valves,
thermostats, meters, etc.). For equipment vendors, an income tax exemption is in place for the share of
revenues received from selling the above equipment, as well as for EE project implementation.
Albania, Bosnia & Herzegovina, Bulgaria, FYR Macedonia, Montenegro, Moldova and Turkey do
not have such provisions to facilitate the import and/or manufacture of EE technologies and
materials.
Moreover, in most countries surveyed, the state has failed to pioneer in embracing energy
efficiency principles by recruiting the services of EE vendors and there are no programs or
provisions for promoting energy efficiency in the public sector at the national government level.
11
Hrvatska Electro Priveda (HEP) -Electricity Company of Croatia
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Programs and provisions for promoting EE in the public sector
During the first decade of the transition from centrally planned to market economies, national
governments in the surveyed countries neglected energy efficiency needs in the buildings and facilities
they owned. Most of the programs promoting EE in the public sector were funded and implemented by
donor agencies like USAID, the WB, the GEF, and the EU, among others that worked to rehabilitate
schools and hospitals, orphanages and kindergartens, and to bring efficient heating and lighting to public
buildings. Nowadays the governments have recognized the importance and potential of EE in the
public sector. The Republic of Bulgaria, Romania and Ukraine have developed comprehensive
programs promoting energy audits and demand-side EE projects in municipal and residential buildings.
For example, in Bulgaria the International “Kozloduy” Fund has financed a 5 million euro pilot project
“Energy Efficiency in State and Public Buildings – Education, Health, Culture,” while the Target
Program for Energy Efficiency in Buildings – 2007 finances obligatory certification of state-owned and
municipal buildings.
As noted above, the Romanian authorities of local public administrations in localities with over 20,000
inhabitants are obliged to develop their own programs to improve energy efficiency.
The Croatian Energy Law stipulates development of energy efficiency programs for the public sector.
The UNMIK draft Administrative Instruction on End-Use Energy Efficiency and Energy Services
includes Article 5 stipulating energy end-use efficiency in the public sector including EE equipment
procurement and financing for energy audits among other provisions. In addition, in UNMIK the
KPEERES 2007-2009 includes project A 1 “House-in-Order Project,” which includes elaboration of a
public building inventory, energy management software, implementation of a pilot system for ten
buildings, realization of no- or low-cost saving measures and audit reports.
Of the countries surveyed, Serbia has a notable amount of programs promoting and financing energy
efficiency in the public sector. The program for Improvement of Energy Efficiency in Public Buildings
through the “Republic of Serbia Energy Efficiency Project (SEEP)” is financed by the World Bank
credit and loan. There is another program for Improvement of Energy Efficiency in Five District Heating
Companies through modernization financed by a grant of the EAR, while KfW finances the
improvement of EE in six DH companies through modernization. These and other programs are directed
towards improvement of efficiency in the public, municipal, residential, and industrial sectors, including
even the introduction of municipal energy management.
Ukraine is the record-keeper in the number of laws and governmental decrees on public sector EE.
These are largely targeted at energy auditing, metering and reducing energy consumption in the
enterprises financed by the state budget. They are also targeted at the development of regional and local
energy conservation programs, and at establishing energy management units within the regional (oblast)
administration, among other objectives. However, on the municipal level EE programs and staff are less
common and need further development.
The Republic of Albania, Bosnia & Herzegovina, Moldova and Georgia do not have programs
promoting EE in the public sector. In the Republic of Montenegro, as part of a larger package, an EE
action plan for the public sector is under development to be proposed for adoption by the government,
however there are no schemes promoting EE on the municipal level. The only program in FYR
Macedonia in this area is the development and start up of a utility-based energy service company under
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29
the umbrella of the power transmission company, which is intended to demonstrate performance
contracting and third-party financing schemes for publicly-owned buildings
Public information campaigns promoting EE
All program implementers and policymakers have recognized the extensive need for capacity building
and awareness raising for the promotion of energy efficiency for all relevant target groups: state and
municipal authorities, energy consultants, management and technical personnel of energy enterprises,
the banking sector and other targeted financiers, as well as the energy service providers, consumers, and
HOAs. Virtually all energy efficiency laws contain an article devoted to raising public awareness on the
benefits of EE and propaganda of energy efficiency products. The noteworthy case of Bulgarian
information campaigns include EE education for primary (Kids4future Project) and secondary (Energy
Path Project) schools, media programs directed at changing energy users’ behavior (BEHAVE Project),
and others. The Republic of Croatia as well has a wide range of awareness programs addressing the
information needs in different areas, such as buildings, cogeneration, centralized heating, etc.
In UNMIK a whole set of EE public information campaigns are envisioned for the wide public,
university and school students for the period of 2007-2009 within the KPEERES Program. In Moldova,
the Alliance to Save Energy organized EE awareness raising though PSAs, roundtables discussions,
booklets, trainings, study tours on EE issues within the USAID-funded MUNEE program. In FYR
Macedonia the EE awareness programs only cover the residential sector. In the Republic of Montenegro
a public awareness campaign on EE issues is planned for 2008-2010 under the World Bank project "EE
in public buildings”.
Regardless of the legal provisions, in some countries such as in the Republic of Albania, Romania,
Bosnia & Herzegovina, Turkey, Serbia and Georgia currently there are no ongoing campaigns (or
very limited efforts) providing guidance on appropriate EE measures for relevant sectors. The lack
of such programs on the national level can be addressed to some degree by regional (multi-country)
activities, which help document and exchange best practices and lessons learnt from various EE
measures.
Table 2 provides a summary matrix reflecting the current coverage of EE policies and programs in the
researched countries.
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Table 2. Policies and programs stimulating the implementation of energy efficiency projects.
ROM
BLG
MAC
ALB BIH
Country / Question
Energy efficiency policies or strategies establishing
energy savings goals for the country as a whole and
by sector.
Energy efficiency action plans detailed by energy
end use sector
Economic and financial incentives for energy
efficiency measures (tax exemptions, subsidies,
rebates, grants, soft loans, financial guarantees, etc)
Energy efficiency funds
Voluntary agreements and/or other market-oriented
schemes, such as white certificates, etc.).
Policies facilitating import of energy efficiency
materials and equipment and promoting local
manufacturing of same.
Incentives, equal competition and level playing field
for EE service providers (e.g. ESCOs, installers,
energy advisors, auditors and energy consultants)
Programs and provisions for promoting energy
efficiency in the public sector at the national
government level.
Programs and provisions for promoting EE in the
public sector at the municipal level.
Public information campaigns promoting EE.
++
+
+~
~
CRO
UKR
MLD
TRK
GEO
SRB UNMIK
++ ++ + + + ++ ++ ++ ++ - + + ++
++ ++ ++ + - ~ + - - - ~ +~ ++
+
+
~
-
-
- ++ + +~ - +
-
+~
++ ++ +~ ~ ~ + ++ +~ + +~ ~ +~ +
+ - - - - ++ - - - - - + - - - - - - - ~ +~ +~
+
-
-
+ ++ +~
++ ++ ++ ++ +
-
-
- ++
-
-
-
~ +~
-
- - + ++ - +~ - + +~ +~
- + ++ + ~ +~ - + +~ - - ++ ++ + - - + + +~
Fully Implemented: Development in this area is advanced and necessary capacities are in place
Partially Implemented: Development has started, legislation and some capacity is in place, further legal and capacity advancement still necessary
Planned but not implemented: Legislation is in place, is fairly recent and implementation is pending
Nothing: No legislation and/or capacity is in place, need for both legal and capacity development
Legislation has been in place for a substantial amount of time, but not enforced (or implementation failed).
Alliance to Save Energy
MNE
U.S. Agency for International Development
31
4. Institutional Framework
Dozens of new institutions related to energy and energy efficiency were created in the analyzed
countries over the past two decades. Energy ministries have opened new departments or
divisions, many countries have established energy regulators and energy efficiency agencies. The
number of non-governmental organizations (NGOs) has slowly grown. Municipalities have
formed associations pursuing common goals. All of these play their respective important roles in
communicating the energy conservation message to consumers and lawmakers, disseminating
best practices and assisting in their replication. Certainly, not all institutions are fully effective;
however, the absence of such agencies – owners and champions of the EE reforms – might
hamper or indefinitely postpone the implementation of even very strong reform initiatives. The
country comparison section (Annex I) has the full list of relevant agencies with brief descriptions
of their respective scopes of activities directed to the promotion of energy efficiency. The
contact data for some of the key institutions is included in Annex II.
Energy efficiency agencies are desirable institutions for the implementation of national policies
promoting energy efficiency. Agencies specifically designated to support policies and actions for
energy efficiency or energy conservation exist in the Republic of Bulgaria, Moldova, Ukraine,
Romania, and the Republic of Serbia. In other surveyed countries – Bosnia & Herzegovina,
Georgia, Turkey, UNMIK and the Republic of Montenegro -- there are no dedicated EE
agencies, leaving the implementation of EE policies (where they exist) to one or several national
authorities that have EE as one of several different responsibilities. Particularly in the transition
economies, the national budgets have scarce if any resources to set up and sustain a new energy
efficiency agency with adequate staff and budget. In many such cases, the national government
(e.g. as in UNMIK and the Republic of Montenegro) authorizes a line ministry to add EE tasks to
its existing scope of work. Regardless of where the key team facilitating the implementation of
national energy efficiency policy is, it requires sufficient funding and staff to fulfill this role.
With the exception of Bosnia & Herzegovina, all countries already have energy regulatory
authorities that are called to balance the interests of suppliers and consumers through the tariff
mechanisms.
Another important governmental institution is the energy institute – typically a national-level
research facility that advises the government on energy policy matters, compiles and analyses
energy sector statistics, and helps draft governmental documents and technical regulations in this
sphere. Such institutes do not exist in Albania, BiH, Turkey, UNMIK and the Republic of
Montenegro, and the lack of the type of data and analyses they would produce can become a
bottleneck in the long-term planning for the energy sector and for improving energy efficiency.
The emerging non-governmental organizations (NGOs), which predominantly came from the
environmental and technical fields, gradually devote more and more attention to energy
efficiency in its relation to national security, climate change mitigation, social and health
considerations. A relatively new type of NGO is the energy efficiency center, which in several
countries has provided EE consultancy services to governments, the private sector and
international donor-funded programs on the EE opportunities in the respective countries. These
EE centers have played an instrumental role in the restructuring and policy reform of the energy
sector, introduction of energy audits in the private sector, promotion of energy management in
the municipal sector, raising public awareness on EE issues in various sectors, and the provision
of many other useful services needed for the uptake of energy efficiency by the economies in
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transition. With the exception of the Republic of Montenegro, such energy efficiency centers or
similar NGOs exist in all of the countries surveyed. They are strong and well-established with
large staffs in some countries (e.g. Bulgaria, Ukraine, Romania, Albania), while in others they
were established more recently and are relatively smaller in size (e.g. Moldova, BiH, UNMIK).
The latter need further strengthening in order to be able to perform and fulfill their role as the
primary EE advisor for multiple sectors and types of institutions. In the past, the networking
between these centers has been one of the most effective tools for regional dissemination of EE
best practices.
Table 3 provides an overview of the institutional capacities in the governmental and nongovernmental entities in the surveyed countries.
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Table 3. Institutions and Authorities Responsible for Promoting Energy Efficiency
ROM BLG
MAC
ALB
BIH CRO
Country / Question
Government Institutions :
•
•
Ministries with EE department(s)
National energy efficiency or energy
conservation agencies
•
National energy institutes
•
Regional
and/or
local
energy
efficiency agencies and institutes.
•
Other Program Implementation Units
(PIUs) used by donors and IFIs.
Non-governmental Institutions:
•
Municipal or mayors’ associations that
focus on energy, heat and EE
•
NGO energy efficiency centers
•
Environmental groups that focus on
energy efficiency.
•
Business and industry associations
focusing on EE equipment and/or
services and promoting policies in this
area.
Energy consumers’ organizations and
other bodies which actively promote
EE
•
++
+
+~
~
12
UKR
MLD
TRK
SRB UNMIK
++ ++ + + +
++ ++ + + +
++ - ++ + - +
+
+ - + + + + + + +
- + +
+ + ++ ++ +
+ + + -
MNE
++
++
++
++
+~
+
++
+
++
+
++
++
++
++
++
++
-
++
++
+
+
+
+
++
-
+
+
+
+
+
++
-
+
+
+
+
+
+
-
+
+
+
+
++
++
++
++
++
++
+
++
++
++
+
+
-
-
-
-
-
+
-
-
-
-
-
+
++
-
+
-
-
-
-
-
-
-
-
-
-
12
Fully Implemented: Development in this area is advanced and necessary capacities are in place
Partially Implemented: Development has started, legislation and some capacity is in place, further legal and capacity advancement still necessary
Planned but not implemented: Legislation is in place, is fairly recent and implementation is pending
Nothing: No legislation and/or capacity is in place, need for both legal and capacity development
Legislation has been in place for a substantive amount of time, but implementation failed.
The regional EE agencies are operating within the institutes.
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GEO
U.S. Agency for International Development
+
+
+
+
+
34
5. Conclusions and Recommendations
The best incentives for raising the efficiency of energy use are rising energy prices.
Prices can rise naturally, due to resource scarcity, and due to taxes, which artificially
raise the energy prices, internalizing the potential externalities of wasteful use and
resulting environmental degradation. In both cases governments should prepare the
economies and consumers to help them cope with increasing energy costs through
promotion and facilitation of better energy efficiency. Some governments, particularly in
countries with relatively larger shares of low-income consumers, make a political
decision to mitigate the impact of rising energy prices through subsidies. This is a
common pitfall which often exacerbates growth in energy demand and dependence on
imported energy, making it even more difficult to prepare for inevitable energy price
increases. The situation is further aggravated by the lack of awareness and capacity
among various energy consumers to identify and implement energy efficiency projects.
Among the surveyed countries, there are some successful models for promoting EE,
while others lack the basic capacity to utilize the quickest, cleanest, and cheapest energy
resource of energy efficiency. The Republic of Bulgaria, the Republic of Croatia and
Romania, which have already come a long way in transposing the EU Directives in the
sphere of energy efficiency, have many good practices to share with other partners in the
Energy Community.
The key areas where the Energy Community’s countries should focus attention are as
follows:
Policy frameworks
Laws, strategies, programs and plans comprise the policy framework that: identifies the
measures that can cost-effectively yield savings in the near term, assigns the responsible
institutions vested with the state authority to implement the policies, and indicates the
resources assigned for supporting their implementation.
While the objectives of EE policy are usually very clear and easy to define, it is much
more difficult to meet those objectives. In reality, the programs and action plans bear the
challenge of achieving ambitious objectives with limited resources and within short
timeframes. Hence, the action plans and programs should also be very carefully. Some
countries (the Republic of Albania, Bosnia and Herzegovina, and Georgia) are still
missing the fundamental documents for promoting EE. There is need for an underlying
titanic effort to collect and analyze the energy data in each major economic sector, to
project future trends, to identify and assess the EE potential, and to indicate the measures
to be implemented. The municipal leaders should integrate EE into the municipal
development plans as one of the key components of the local development agenda. With
the general trend of decentralization of power in all regions, the local government laws
should also supplemented allowing to give local administrators and community leaders
the authority and resources to perform the above function. Moreover, the administrative
and financial resources for such planning and policy enforcement should be provided to
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avoid failure of reform. The national social assistance programs should be revised to
eliminate subsidies and set energy prices at cost-recovery levels, while subsidizing only
the truly poor consumers.
Legal and regulatory gaps
Albania, Bosnia & Herzegovina, Moldova and Georgia, regardless of the standing energy
security issues, are yet to embark on this road of legal development for the promotion of
energy efficiency. In FYR Macedonia and Albania further strengthening of the EE
legislation is necessary with secondary legislation and enforcement mechanisms. Energy
efficiency laws with the respective secondary legislation need to be developed in those
countries, based on long-term strategies and action plans with specific measures for
implementation of the policies and accomplishment of strategic targets. In most cases,
the national institutions do not have the capacity to comprehensive preparatory
analytical assessments to ensure maximal effectiveness of the policies, and technical
assistance is necessary to ensure the quality of these assessments, as well as
dissemination of exemplary regulatory models, successful legal instruments and
information on other best practices (Albania, Bosnia & Herzegovina, Moldova,
UNMIK, Georgia and the Republic of Montenegro). The technical assistance is
necessary in the areas where the most important and effective components of EE
legislation can be crafted including the following:
•
•
•
•
•
Energy auditing requirements and auditor certification procedures;
Energy efficiency norms, standards, and codes regulating the quality of energy use
by buildings, appliances and processes;
Provisions promoting greater efficiency of energy end-use and supply;
Provisions for financing EE investments using EE funds, energy service companies
and performance contracting, or other appropriate financial instruments; and
Incentive mechanisms promoting market uptake of energy efficiency technologies.
Technical standards, norms, codes, certification and labeling:
The allowed energy consumption maximums or “norms”, minimum efficiency standards
and codes in a given energy-consuming sector provide the technical benchmarks for
reducing energy use in that sector. Due to the extensive technical efforts associated with
their development, regional cooperation can facilitate the efforts in modernizing the
aforementioned types of secondary legislation.
Albania, Bosnia & Herzegovina and Georgia do not have EE standards for equipment and
appliances or modernized building codes, and have no regulations promoting or
mandating building energy efficiency are in force. Development of new standards and
modernization of old ones would also require developing the necessary enforcement and
monitoring mechanisms, as well as institutional capacity.
In Moldova some EE standards are in place, but they lack enforcement. To avoid the
situation in Moldova, the governments of the Republic of Albania, Bosnia &
Herzegovina and Georgia need to develop the energy efficiency standards and building
codes and combine them with adequate enforcement capacities for testing, certification
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and labeling. FYR Macedonia, Albania, Serbia, UNMIK and the Republic of
Montenegro have partially covered the EE standards framework, however many areas
still remain where the state has to establish the efficiency benchmarks, which can be
facilitated through cross-country cooperation in this area including the countries
covered by this assessment and others in the European region where efficiency
benchmarks are in force.
Utility Social Assistance
While Bulgaria and Romania have already made significant accomplishments in this
area, all other countries surveyed for this assessment need reform in the utility social
assistance sphere. To allow for cost-recovery tariffs and ensure profitable operation of
utility enterprises, energy tariffs need to rise and there need to be policies and measures
in place to protect vulnerable households from the increased economic burden.
Moreover, as recently collected and analyzed case studies indicate13, the assistance will
be more effective if it is targeted to those who truly need it, and if some of the social
welfare funds are used for low-income energy efficiency projects, which will help
vulnerable households become more comfortable and affordable from an energy use
perspective. Instead of paying only for energy bills without increasing end-use energy
efficiency, the investments in energy efficiency reduce the amount of energy needed to
make energy-inefficient homes livable. A policy dialogue should be initiated with the
national government policymakers to illustrate the potential benefits from gradual
transition to low-income energy efficiency projects instead of utility subsidies only.
Cross-country cooperation and exchange of best-practices can help facilitate this
process.
Private sector participation (PSP)
Adequate regulations, administrative models, and institutions may make it easier to
recruit the private sector’s help in energy generation and supply. The experience with
PSP in the region studied shows that leasing, concessions, partial privatization and other
PSP schemes can support local authorities in restructuring and modernization of energy
intensive utilities.
Successful models of energy sector PSPs from the Republic of Bulgaria, and Romania
can be replicated in other countries, their experiences analyzed and shared with
government officials in countries, where public utilities operate at a loss and their
customers are unsatisfied. The lessons learnt from PSP market development in CEE14 can
be documented and used for training policymakers and municipal leaders about best
practices in introducing PSP as well as organizing and managing public-private
partnerships (PPPs).
Incentive Mechanisms
13
See Addressing Affordability of Utility Services in Urban Housing: Energy and Water Efficiency
Solutions. Available at www.ase.org.
14
Some examples are described in the Regional Urban Heating Policy Assessment. Available at
www.ase.org.
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There is a lack of incentive programs: virtually all countries surveyed need additional
measures to accelerate the energy efficiency market.
•
•
•
Voluntary agreements and other market-oriented schemes (white certificates, etc.)
o Necessary throughout the region, with Ukraine and Romania being the
only countries of those surveyed with some legal provisions in this area so
far.
Policies encouraging the establishment and growth of EE business, for example
supporting the market for producers and suppliers of energy efficiency materials
and equipment; and EE service providers (e.g. ESCOs, installers, energy advisors,
auditors and energy consultants).
o All countries lack extensive policies in this area. The only example of
some efforts to support the EE market is an import tax exemption on EE
equipment introduced in Romania and Ukraine.
Programs and provisions for promoting energy efficiency in the public sector at the
national government level.
o FYR Macedonia, the Republic of Albania, the Republic of Moldova, BiH,
Republic of Montenegro and Georgia lack such programs promoting EE in
schools, hospitals, municipal buildings, encouraging EE in public
procurement practices, etc.
Investment mechanisms
The most comprehensive legislation on paper cannot guarantee that energy efficiency
measures are implemented without capable and authorized institutions (as noted above)
and without provisions in place that encourage and support investments in EE. Technical
assistance is necessary to help governments make the transition from subsidy (state grant)
funds to loan funds, which would become a long-term, self-sustaining financing
instrument. In addition to the above legal and institutional solutions, there are provisions
for financing EE that are included in the policy framework of some countries surveyed
(e.g. in Bulgaria, Romania and to some extent in others) that could be beneficial for EE
market development in the other countries surveyed:
•
•
•
•
Energy efficiency funds offering financing with the terms and conditions that take
advantage of the energy-cost saving aspect of EE projects and that are acceptable to
a growing number of lenders;
Legal authority for municipalities, HOAs, and other large energy consumers in the
building and utility sectors to borrow money to pay for EE investments;
Legal authority for private sector participation in municipal utilities;
Legal authority for ESCOs to implement projects using energy performance
contracting.
Awareness Raising and Capacity Building
Capacity building and awareness raising can accelerate the achievement of energy
efficiency objectives by introducing decision makers (who decide about policies or about
investments in buildings and other facilities) to state-of-the-art technologies, successful
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U.S. Agency for International Development
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institutional models, innovative financing mechanisms, and practical identification and
preparation of energy efficiency projects.
Albania, Bosnia & Herzegovina, Ukraine, Turkey, the Republic of Georgia,
Moldova and FYR Macedonia lack broad-based programs that raise public
awareness about the benefits and methods of EE. Such programs are necessary to pull
the EE market forces by guiding the purchasing decisions of consumers, accelerating the
uptake of modern EE technologies for demands-side energy efficiency and contributing
to the implementation of the state EE policies.
The capacity strengthening and awareness raising have the potential to address the
extensive need for capacity building on energy efficiency issues in the above countries by
providing appropriate, tailored assistance at all levels and for all relevant target groups:
state and municipal authorities, energy consultants, management and technical personnel
of the energy service providers, the banking sector and other targeted financiers, as well
as the consumers and HOAs.
Guidelines, manuals, public service announcements, brochures, workshops, conferences,
and online EE tools and resources help to improve the consumers’ and policy makers’
understanding of measures they can implement. Some topics which already need such
coverage include but are not limited to the following:
o
o
o
o
o
o
Development of PSP contracts;
Low-income EE programs and projects;
Design of successful EE financing facilities;
Municipal energy planning;
Performance contracting;
EE Projects in HOAs; etc
In addition, some developments have started or are planned in Moldova, UNMIK,
Ukraine, the fYR of Macedonia and the Republic of Montenegro. These can be further
accelerated by the contributions from the regional experiences in similar efforts for the
promotion of energy efficiency.
Institutional structures
Once the national policies and legal framework are in place, and local energy plans,
technological standards, codes and incentive programs are developed, they need to be
implemented in each major sector and city. Implementation requires preparation and
training of experts for carrying out energy management and energy who are skilled and
qualified to determine baseline energy use, assess EE potential and steer specific groups
of end-users toward reaching that potential. The people serving this implementation
function as auditors and managers may be on the staff of enterprises and institutions, or
hired specifically to manage energy use in buildings and communities. It is necessary to
set up or strengthen the following institutions and empower them to realize the EE
potential in the economies of their jurisdiction:
Alliance to Save Energy
U.S. Agency for International Development
39
•
•
•
•
•
designated EE agencies and program implementation units need capacity to design
and implement policies and programs; identify cost-effective EE potentials; set
targets and timeframes for meeting EE targets; design implementation
programs/plans. Cooperation and exchange of information between such agencies
of different countries can help identify successful approaches to EE policy
implementation and application of incentive mechanisms (LTAs, performance
contracting, innovative financing, appliance labeling, etc.)
municipalities and public institutions need: awareness raising on the benefits of
energy efficiency; integration of EE into their long-term development plans;
training of designated staff on energy management; and incentive or administrative
mechanisms for ensuring achievement of local energy efficiency targets.
EE commissions, associations and NGOs need the awareness and competence for
effectively handling the dialogue on EE priorities and needs, opportunities and
benefits. They also need to cooperate on efforts to introduce and implement
national policies and programs, as well as to replicate EE successes.
ESCOs and HOAs need awareness and tools for implementing energy efficiency
projects. The tools can include, for example, information about successful
contractual and management models, and innovative technical and financial
solutions.
Institutions gathering and analyzing statistics need funding and contemporary
models for collecting up-to-date, comprehensive, accurate statistics on energy
generation and use, energy operational capacities and efficiencies, and deployed
technologies in all major economic sectors.
The institutional strengthening needs are especially high in the EE institutions of
Albania, Bosnia & Herzegovina, Croatia, Ukraine, UNMIK, Georgia, Moldova,
Serbia, FYR Macedonia and Republic of Montenegro. The Republic of Georgia also
needs general development of institutions to embrace EE opportunities, as currently
there are very few role-players in this field in Georgia.
Alliance to Save Energy
U.S. Agency for International Development
31
ANNEX I. COUNTRY COMPARISONS
There are three primary sections, each of which has several sub-sections. Each subsection is then organized by countries, alphabetically
1. Albania, Republic of
2. Bosnia and Herzegovina
3. Bulgaria, Republic of;
4. Croatia, Republic of;
5. Georgia, Republic of;
6. Kosovo, United Nations Mission in;
7. Macedonia, former Yugoslav Republic of;
8. Moldova, Republic of;
9. Montenegro, Republic of
10. Serbia, Republic of;
11. Romania;
12. Turkey;
13. Ukraine.
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1. Laws and Regulations
1.1. Existing Laws and Regulations concerning energy efficiency
and heat
1.1.1. Republic of Albania
National Strategy of Energy has been prepared and was formally approved by the Prime Minister in
June 2003. It was scheduled for an update in June 2007. The strategy addresses three main
issues: (1) energy demand-supply situation until 2015; (2) restructuring of the energy sector; and
(3) preparation of an investment package for implementation of all energy-efficiency measures
and all master plans based on recommendations in the National Strategy of Energy. The primary
objective of the strategy is to restructure the energy sector based on market-based principles and
to develop a modern energy policy. The scope of the strategy prioritizes: reliability of energy
supply, especially of electricity; establishment of an effective institutional and regulatory
framework; optimization of the energy supply system using energy resources based on least-cost
planning principles and minimization of environmental pollution.
Policy on the Promotion of Energy Efficiency and Renewable Energy Sources (April 2005) addresses
national energy efficiency policy and objectives, provides for creation of local energy offices,
labeling of electric appliances, energy auditing (licensing and responsibilities of auditors and
owners of facilities being audited), energy efficiency fund (financial sources, fund administration,
activities fund will support).
Energy Law was passed in 2003.15
1.1.2. Bosnia & Herzegovina
Energy Sector study – only in preparation (to be finished Dec. 2007)
Energy sector strategy (EC CARDS) – slow progress
Neither Energy law nor Energy efficiency law at the state level
No Energy Agency/Center at the state or entity level
No Energy Efficiency Agency/Center at any level
No Energy balance at the state level
No Energy statistics at any level
1.1.3. Republic of Bulgaria
Energy Strategy of the Republic of Bulgaria16
15
The law was drafted mostly by Pierce Atwood with support from CORE International, with technical assistance funding from
USAID.
16
http://www.seea.government.bg/documents/EnegyStrategyEN.PDF
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Energy Efficiency Act (EEA)2
Renewable and Alternative Energy Sources and Biofuels Act3
Energy Act (EA)4
1.1.4. Republic of Croatia
1.1.5. Republic of Georgia
1.1.6. Former Yugoslav Republic of Macedonia
A Program on Efficient Energy Use in the Republic of Former Yugoslav Republic of Macedonia until
2020 was adopted in 1999, based on which a Strategy for Energy Efficiency until 2020 was
developed by 2004 with the financial support of USAID (PEEREA 2006a, E.V.A. n.d.b.).
Furthermore, the new Energy Law, incorporating a special chapter “Energy Efficiency and
Renewable Energy” was passed in May 2006.
1.1.7. Republic of Moldova
1.1.8. Republic of Montenegro
The Energy Law (2003) and the associated document ‘Energy Policy for the Republic of Montenegro’
(2005) define the broad responsibilities of the Ministry for Economic Development (formerly the Ministry
of Economy) regarding Energy Efficiency and Renewable Energy in Montenegro, as follows:
Article 3: For the purpose of fulfilling its obligations under this Law and other applicable laws, the
Government shall, through the Ministry:
a) realize Energy efficiency policies and encourage the conservation of Energy resources;
b) encourage and advise on energy efficiency and the rational use of Energy;
c) develop and promote incentives for the efficient use of Energy and renewable resources;
d) promote the increased use of Renewable Energy Sources and alternative energy sources for Generation in
the internal market; and
e) manage funds contributed for the purpose of Energy conservation and Energy efficiency.
In addition, the document entitled ‘Energy Policy of the Republic of Montenegro (2005) obliges the
Government of Montenegro and other authorised institutions to accomplish two additional goals
directly related to energy efficiency:
• Providing institutional and financial incentives for energy efficiency improvement and
energy intensity reduction in all sectors, including all parts of the energy chain, from
generation to energy consumption.
• Providing support for research, development, and promotion relating to new clean, and
efficient energy technologies and related to conducting of the energy policy on an expert
and scientific basis.
2
http://www.mi.government.bg/eng/norm/rdocs/mdoc.html?id=190688
http://www.mi.government.bg/eng/norm/rdocs/mdoc.html?id=212967
4
http://www.mi.government.bg/eng/norm/rdocs/mdoc.html?id=187497
3
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34
In line with the above provisions the “Energy Efficiency (EE) Strategy of the Republic of
Montenegro” was developed with EU Technical Assistance and adopted by the Government on 13
October 2005.
The EE Strategy provided, among others, for the adoption of an Energy Efficiency Law, the creation of
the Montenegrin Energy Efficiency Unit (MEEU) under the Ministry for Economic Development to
be in charge of EE and RES promotion and for establishment of an EE Fund. The EE Strategy needs to
be revised and updated to ensure consistency with the EDS and to take into account important
developments in EU such as the new Directive 2006/32/EC on energy end-use efficiency and energy
services, and the Action Plan for Energy Efficiency: Realising the Potential COM(2006)545 final.
The “Energy Development Strategy of Montenegro up to 2025” (EDS) was adopted by the
Government on December 2007 and recognises the importance of EE and proposes following three Key
Axes of interventions which should be promoted in parallel:
•
Establishment of the basic framework for EE (EE Law, EE central Institution and EE
Fund) and gradual development of the necessary legislative, regulatory and institutional
framework for EE;
• Implementation of sectoral programmes for EE including provision of incentives,
technical assistance and promotional/ marketing activities
• Promotion of investments in EE by mobilizing international financial assistance, state and
local funds and private capital.
Recommended areas of activities for energy efficiency given in EDS are: framework for energy
efficiency, supply side, large industrial consumers, all consumption sectors, buildings sector (general),
public sector, households, transport sector, cogeneration (CHP) and district heating (DH).
MEEU was established within the Ministry for Economic Development as an informal unit and staffed
with 2 persons initially. In addition the Energy Efficiency Council for implementation of the EE
Strategy was established.
Energy Efficiency Action Plans for 2006 and 2007 were adopted by the Government.
Under the EAR project "Technical Assistance to the MEEU" following documents were prepared:
• EE Action plan (Work Plan) for 2008,
• EE Action plan 2008-2012,
• EE Action plan for Public Sector (2008-2012),
• Market Study and Strategy for space heating, cooling and EE in Residential Sector.
1.1.9. Romania
Law on Efficient Use of Energy No. 199/2000, modified and completed by Law 56/2006, sets up
the necessary legal framework for the national policy on the efficient use of energy. See more
about its implementation in the following sections.
Law for Ratification of the Kyoto Protocol at the UN Framework Convention on Climate Change
No. 3/2001, approves Romania’s target to reduce its greenhouse gas emissions by 8% from the
1989 level, during 2008-2012.
Law Transposing European Directive Regarding Energy Performance in Buildings No.
372/2005.
Ministerial Ordinance No. 263/2007 presented the methodology for the implementation of the Law
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35
372/2005. See more about it implementation in the following sections.
Law No. 325 of May 27, 2002 approves the Government Ordinance No. 29/2000 on thermal
rehabilitation of the existing housing stock and promotion of energy saving. It sets the legal
framework for the thermal rehabilitation and modernization of residential buildings and their
associated installations.
Government Decision 163/2004 approves the National Energy Efficiency Strategy. The main
objective of this strategy is to identify the potential and means to increase energy efficiency of the
country’s energy networks through the implementation of suitable programs. The strategy aims
to reduce Romania’s energy intensity by 40 percent during 2004-2015, assuming an annual
average growth in GDP of 5.4 percent.
Government Decision No. 882/2004 approves the National Strategy on District Heat Supply.
Law on Heat Supply Public Service No. 325/2006 (art 18 (1) e)).
GEO (GoR Emergency Ordinance) No. 174/2002 calls for special actions to thermally rehabilitate
multi-story apartment buildings, as approved by Law No. 211/2003.
National Program for Reduction of Energy Bills for the Population through Improved Energy
Efficiency and Use of Renewables for year 2007. The Romanian Agency for Energy
Conservation (ARCE) is in charge of implementing the Program. The Ministry of Economy and
Finances is in charge of making allocations to the local budgets according to this Program.
Government Decision No. 1535/2003 regarding the “Strategy for the Promotion of Renewable
Sources of Energy” and Government Decision No 443/10.04.2003 concerning the promotion of
the production of electrical energy from renewable energy sources. This latter Government
Decision was amended by Government Decision 958/2005 (transposing Directive 2001/77/EC)
and forms a legal framework for the promotion of renewable sources of energy. This will have a
direct impact on the reduction of energy consumption.
1.1.10.
Turkey
Energy Efficiency Law no.5627 as of 18.04.2007
Law no.5346 on Utilization of Renewable Energy Sources for Electric Energy Generation dated
10.05.2005.
No heat legislation (14% of the houses are equipped with central heating, 86% with individual
heating systems. Energy Efficiency needs assessment in Turkey – EU Del. Ankara – April 2004)
1.1.11.
Ukraine
Law on Energy Conservation
Law on amendments to some legal acts stimulating measures on energy conservation № 760-V as of
March 16, 2007
Comprehensive State Program for Energy Conservation
Energy Strategy till 2030
“State Support Program for the Development of Non-Traditional and Renewable Energy Sources",
Amendments to the Law on Electricity in regard to “green energy tariffs” were adopted in 1st reading,
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36
in 2005
Law on Alternative Energy Sources, 2003
President Decree on Establishing the National Agency on Efficient Energy Use (December 2005)
Decree of the Cabinet of Ministers on Establishing State Inspection for Energy Conservation (1996)
Law On Amendments to the Code of Ukraine on the Administrative Delinquencies on Defining
Responsibility for Violation of Legislation of Energy Conservation , June 21, 2001 #2550-III
Decree of the Cabinet of Ministers on Additional Measures and Specified Indicators of the
Comprehensive State Program for Energy Conservation #1040, June 24, 2000
Decree of the Cabinet of Ministers on Procedure for Setting Norms for Energy Unit Costs (1997)
Decree of the Cabinet of Ministers on Measures to Achieve Rational Use of Energy (2000)
Decree of the Cabinet of Ministers on Managing Energy Savings (January 1996)
President Order on the Measures to reduce Energy Consumption by Budget Institutions,
Organizations, and Budget Enterprises (1999)
Oblast Programs on EE
Municipal Programs on EE
Law on Combined Heat and Power & Waste Energy Potential, April 5, 2005 № 2509–IV
Law on Heat Supply (2005)
Law on Housing and Communal Service
Rules on Providing DH services, Supplying Hot and Cold Water and Waste Water Disposal
1.2.
Regulations on industrial and power generation:
•
access for the CHP electricity producers to the public electricity grid
•
feed-in tariffs for CHP electricity
•
energy taxes
•
energy efficiency obligations (for energy generation, transmission and distribution
companies, transportation companies and other consumers)
1.2.1. Republic of Albania
Power Sector Policy Statement was developed (with support from USAID) and formally approved
and disseminated by the Prime Minister in April 2002 (Decree Nr. 171). It documents the
Albanian government’s objectives for reforming the power sector. Its stated objectives are to
develop an electricity market that provides reliable, safe and adequate electricity supply at
reasonable prices that are economically and environmentally sound and in accordance with
market principles and the rule of law.
A utility restructuring and unbundling plan was developed in 2002. The national electric utility was
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37
near bankruptcy in 2000 with technical losses over 40% and collection rates at only 30%. By
2004 collections were up to 87% and losses were reduced to 12.5%.
An action plan for the Korporata Elektroenergjetike Shqiptare (Albanian Power Corporation
“KESH”) set out a short-term investment program from 2003-2005 requiring installation of
electric meters for all customers, elimination of illegal connections in zones close to big cities,
and implementation distribution and transmission projects.
Albania Power Sector Reform Law (August 2003) provides for ways to expedite participation of
Independent Power Producers (IPPs) in the electricity market. The law provides for licensing of
construction and operation; transmission access; and power sale arrangements. The impacts of
IPP on energy efficiency are unclear, but IPP is important for making the national electricity
market more competitive and diversified by increasing the number and experience of market
participants.
Fuel and electricity suppliers are obliged to submit data reports to the National Agency of Energy
(now the AKBN) on the amount of energy supplied to their customers every six months (at the
end of March and the end of September each year).
1.2.2. Bosnia & Herzegovina
Not Available
1.2.3. Republic of Bulgaria
Energy Act 2003
•
Article 93a.
(New, State Gazette No. 74/2006, effective 1.07.2007) (1) The public provider shall purchase
electricity from producers connected to the transmission network, on contracts for long-term
purchase of available electricity, as well as electricity produced from renewable energy
sources, from high-efficiency cogeneration, and the quantity of electricity determined
according to the procedure established by Item 8 of Article 4 (2) herein.
•
Article 162.
i. (1) (Amended and supplemented, SG No. 74/2006, effective 1.07.2007) The public
provider and the suppliers of last resort, respectively, shall be obligated to purchase from
producers connected to the respective network the entire quantity of electricity produced
from high-efficiency cogeneration, registered by a certificate of origin, with the exception
of quantities used by the producer for own needs or for which the said producer has
concluded contracts according to the procedure established by Section VII of Chapter
Nine, or quantities with which the said producer participates on the balancing market.
ii.
(2) (Amended, SG No. 74/2006, effective 8.09.2006) The electricity referred to in
Paragraph (1) shall be purchased at preferential prices according to the relevant ordinance.
1.2.4. Republic of Croatia
Regulation on Minimum Share of Electricity Produced From RES and Cogeneration (published; in
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38
force from 7/2007)
Specifies a minimal share of electricity produced from RES and cogeneration to be purchased (to
the end of 2010): 5.8% of total electricity consumption (900 GWh now, approximately 1050
GWh in 2010)
Tariff System for Electricity Production from RES and Cogeneration
•
Determine the producer's right to an incentive price payable by the market operator for
energy supplied (fixed feed-in tariffs, 12 year duration)
The following taxes are imposed on energy related products. The revenue from excise taxes and VAT
goes into the central budget.
Objective of the tax
Excise tax rate
VAT rate
-----------------------------------------------------------------------------------------Unleaded petrol
311.7 EUR/kill
22%
Leaded petrol
376.6 EUR/kill
22%
Diesel
194.8 EUR/kill
22%
LPG
13 EUR/t
22%
Light fuel oil
39 EUR/kill
22%
Other energy products such as coal, natural gas, district heating and electricity are subject to 22%
VAT rate.
In the Republic of Croatia introduction of CO2 air emission charge is considered.
The main support scheme foreseen for high efficiency cogeneration would be a feed-in tariff
financed by a fee that would be part of the electricity price. Micro CHP plants receive favorable
treatment regarding required primary energy savings, in line with directive 2004/8/EC. (Screening
Report, Republic of Croatia, March 29, 2007)
1.2.5. Republic of Georgia
1.2.6. United Nations Mission in Kosovo (UNMIK)
Law No. 2004/10 on Electricity established standards and conditions for the integrated system of
electricity generation, transmission, distribution, and supply in order to achieve a competitive and
sustainable market in electricity. The law came into effect 29 April 2004
•
Article 10.1 of the Law on Electricity stipulates that energy enterprises that generate
electricity using renewable energy resources or waste and co-generators that produce
electricity and heat in a single plant are entitled to obtain certificates of origin from the
Energy Regulatory Office. Article 10.3 stipulates that Public suppliers shall give purchasing
priority to electricity for which a certificate of origin has been issued, provided that the cost
of such electricity does not increase the price of electricity to an unsustainable level in
UNMIK. The public supplier shall be required to purchase at a regulated price the entire
amount of electricity for which a certificate of origin has been issued to meet the needs of
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electricity consumption in UNMIK with the exception of any amount for which the producer
has entered into contracts pursuant to the provisions of this Law. The Energy Regulatory
Office may compensate the costs to the public supplier by a specific charge on the services
of the transmission system operator.
•
The electricity producing company of UNMIK KEK is obliged under its licensing
agreement to report regularly on the efficiency at which it generates electricity.
•
UNMIK Program for Energy Efficiency and Renewable Energy 2007-2009 includes project
F2 “Energy Efficiency in Power Generation” foresees the design of an energy efficiency
monitoring system integrated in the Environmental Monitoring Systems (EMS) to be
established in Tops UNMIK A and B.
1.2.7. Former Yugoslav Republic of Macedonia
Energy Law, adopted by Parliament
The General Conditions of Delivery of Heat, adopted by the Municipality
The Pricing Methodology for all Types of Energy, adopted by Government, prepared by ERC
The Special Conditions for Delivery of Heat, adopted by the Municipality
The Tariff System for the Delivery of Heat, prepared by ERC, adopted by Government
License and License agreement signed between the Municipality and Toplifikacija AD
1.2.8. Republic of Moldova
There are feed-in tariffs for both heat and electric energy produced from CHPs in Moldova.
The energy taxes in Moldova include:
•
The charge on air pollution,
•
Value Added Tax on fuel,
•
Special custom duty on the import of mineral fuel,
•
Excise on fuel.
1.2.9. Republic of Montenegro
EDS and the Energy Efficiency Action Plan up to 2012 propose:
• Urgent measures for the enforcement of the existing thermal insulation regulation with parallel
implementation of publicity and information dissemination campaigns to potential owners and
tenants to create a market demand and pressure for construction of energy efficient buildings and
systems,
• Incorporation of EE provisions and concepts in the draft Law of construction and spatial
planning, as well as planned EE Law,
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40
•
Development of new regulatory framework with the adoption the concept of buildings’ overall
“energy performance requirements” and in second phase, the “energy performance certificates”
in line with the Directive on the energy performance of buildings (2002/91/EC).
• Introduction of schemes for energy labelling and minimum energy performance requirements of
appliances and energy consuming equipment.
• Regulations for introduction of individual metering and energy cost distribution according to the
actual consumption.
• Measures for promotion of low-energy buildings and incorporation of RES (especially passive
and active solar systems) into buildings’ energy systems.
Note: Under Action Plan 2007, a Working Group has been established to study and propose the necessary
legislative, regulatory and institutional requirements for promotion of EE in buildings. The Working
Group particularly examined the possibilities and requirements for transposition and enforcement of the
following directives:
• Energy performance of buildings Directive 2002/91/EC (EPBD),
• Labelling and standard product information of the consumption of energy and other
resources by household appliances (Directive 92/75/EEC and “daughter” Directives),
• Minimum efficiency requirements for new hot-water boilers, household electric
refrigerators and freezers and ballasts for fluorescent lighting. (Directive 92/42/EEC, etc.).
Up to now, Working Group has prepared Report for preparation of the Programme on legislative,
regulatory and institutional requirements for EE in Buildings. In addition, Working Group
incorporated EE provisions and concepts in the draft Law of construction and spatial planning. EE
Law is planned to be prepared by the Government in 2008 and it will define mentioned
requirements. For this issue international TA is needed.
In bilateral cooperation with Norwegian Government, currently ongoing project "Capacity Building
on Energy Auditing of Buildings" has main objective to increase local capacities and skills on
Energy Auditing of Buildings, and provide methods and tools supporting Montenegro to comply
with the EU Directive on the energy performance of buildings. One of the programme components is
support Ministry for Economic Development in development of regulatory framework for energy
efficiency in the building sector and assistance to the MEEU in developing an action plan for
development of proper building regulations for energy efficiency in the Montenegrin building sector.
Other relevant programs and regulations include:
1. Programme for development of Energy database is under preparation,
2. Sustainable Development Strategy of Montenegro was adopted (one of priorities is energy
efficiency and renewable energy),
3. Montenegro has ratified the Kyoto Protocol. Montenegro is a non-Annex-I country (i.e. without
specific obligation for emissions reductions), but is eligible as a host country for projects under
the Clean Development Mechanism (CDM),
4. Preparation of EE Law is planned for 3rd quarter of 2008,
Establishment of Montenegrin Agency for EE and RES is ongoing project (preparation 2008,
establishment 2008).
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1.2.10.
Romania
Long Term Agreements (LTA) are mechanisms used by governments and industries to achieve
energy-efficiency improvements in the industrial sector. ARCE and SenterNovem (Agency for
Promotion of Sustainable Development and Innovation of the Ministry of Economic Affairs of
the Netherlands) are working to introduce the first LTA in Romania. The project was launched in
2006. The first stage (October 2006-September 2007) was completed with the signing of a Letter
of Intent between the Romanian and Dutch Governments and employers’ associations of the 3
largest energy consuming industries.
Access to grid: The Law No. 13/2007 on electricity guarantees that combined heat and power (CHP)
electricity producers shall have access to the public electricity grid. No legal provision provides a
minimal feed-in tariff for CHP electricity.
Energy taxes: All heat and power producers pay 2% and 9% taxes on their revenues from heat and
power deliveries, respectively, for generating a ministerial budget for financing energy efficiency
projects.
Mandatory EE planning: The Law on Efficient Use of Energy No. 199/2000 requires the
economic agents with a consumption exceeding 1000 tons of fuel equivalent and the
municipalities with a population exceeding 20 000 residents to develop energy efficiency
programs that would include no-cost and low-cost measures, as well as long-term (3 to 6 years)
energy-efficiency programs with an investment plan based on feasibility studies conducted for
this purpose. ARCE and the Ministry of Public Utilities, Transport and Housing are required by
the same law to provide free assistance for development of these programs and are allowed to hire
short-long or short term experts to prepare strategies and feasibility studies.
•
Investment and financing mechanisms:
i. The Law on Efficient Use of Energy No. 199/2000 allows the economic agents and the
public utilities to finance EE from their own sources and offer a financial support up to
50% of the investment required from the Special Fund for Energy System Development
founded by Law No. 136/1994.
The same law provides for loans for energy-efficiency improvement to be issued by the
banks at a maximum 7.5% interest rate, guaranteeing the payment of the difference from
the annual state budget allocations.
The National Program for Reduction of Energy Bills for the Population through Improved
Energy Efficiency and Use of Renewables for year 2007 is a follow-up of the program 200617.
Under the Law on Budget, 30,425 mln lei were allocated for non-reimbursable co-financing of
investment programs targeted towards rehabilitation and modernization of the district heating
systems (SACETs). The National Program 2007 secures up to 30% co-financing of investments
in rehabilitation and modernization of SACETs. The direct beneficiaries are the local authorities
from urban areas.
•
The Program shall help:
i. Reduce the heat bill of the population by 15%-25%;
17
Background information: In 2006, 38 projects proposed by 28 beneficiaries were selected and co-financed by the Program. The total
co-financing value was 40 mln lei.
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42
ii. Stimulate in 2007 an investment of over 400 mln lei at a local level;
iii. Attract non-reimbursable financing, credits and PPPs;
iv. Compensate the impact of the reduction of subsidies for heat and the impact of increasing
fuel prices on the population;
v. Develop the energy services and energy efficient equipment market in Romania;
vi. Increase the number of financing institutions, including the international ones supporting
energy efficiency projects;
vii. Increase the comfort and supply of heat and hot water and reduce the emissions in urban
areas.
•
ARCE is responsible for Program implementation, performs the technical analysis to
determine the eligibility and select participants in the Program.
The Ministry of Economy and Finances is making the transfers to the local budgets of the
amounts allocated for this purpose.
The urban population connected to the district heating systems is the indirect beneficiary of
the Program.
Government Decision No.163/2004 approving the National Energy Efficiency Strategy
also refers to the rehabilitation and modernization of the district heating networks.
1.2.11.
Republic of Serbia
Energy Law (No. 84/2004, “Official Gazette of the Republic of Serbia”) established standards and
conditions for the integrated system of electricity generation, transmission, distribution, and
supply in order to achieve a competitive and sustainable market in electricity. The law came into
effect on 1 August 2004
•
Article 25 of this Law provides for the activities on the energy market shall be carried out
and organized in conformity with energy sector development objectives and consumer needs
in the Republic of Serbia with a view to high quality and reliable energy supply, while
respecting the principles of competitiveness and the equal legal status of all entities on the
market in exercising rights to construct energy facilities i.e. obtain construction permits,
system access rights, rights to engage in energy activities, the acquisition of eligible
consumer status and in other cases defined under this Law.
•
Article 30 of this Law stipulates the criteria for issuing energy permits for production
capacities construction. They shall include, among the rest, energy efficiency level. Also
(Article 32), an application for issuing an energy permit shall particularly include, among
the rest, energy facility type and capacity and its energy efficiency.
•
The status of an eligible consumer shall be granted to a consumer of power, i.e. natural gas
or heat, the total energy consumption of which, in the course of the previous 12 months at all
measuring points, exceeds the determined annual energy level for granting eligible
consumer status (Article 39). The status of an eligible consumer shall be granted on the basis
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43
of a decision confirming that conditions stipulated have been met, to be issued by the
Energy Agency of Republic of Serbia (AERS). The Agency shall issue this decision within
30 days as of the date of submission of the consumer’s written application for status of
eligible consumer, i.e. for the change of tariff consumer status into eligible consumer status.
The change of tariff consumer status into eligible consumer status, i.e. the change of eligible
consumer status into tariff consumer status cannot be made before the expiry of 12 months
as of the date of the last status.
•
An energy entity may start an energy activity on the basis of a license issued by the Agency,
unless otherwise stipulated by the Law. A license shall be issued under a decision within 30
days as of the date of license application (Article 44).
•
The license shall be issued for a period of 10 years (Article 45). A license shall be issued to
an energy entity if energy facilities and other equipment, installations or plants required for
conducting the energy activity meet the conditions and requirements specified, among the
rest, energy efficiency regulations (Article 46).
•
Article 84 of this Law defines “privileged” electrical power producers. They shall be
producers who in their electrical power generation process use renewable energy sources or
waste, those who generate electrical power in electric-power plants considered as small
electric-power plants within the meaning of this Law (up to 10 MW), as well as those who
simultaneously generate electrical power and heat, provided they meet energy efficiency
criteria. The Government of the Republic of Serbia shall define detailed conditions for
granting the status of a privileged producer and eligibility criteria. A power producer shall
apply for the status of a privileged electrical power producer, submitting proof on meeting
the eligibility criteria to the Minister, who shall decide the submitted application within 30
days as of the date of its submission. An appeal against the decision may be lodged with the
Government of the Republic of Serbia within 15 days as of the date of its receipt. The
Ministry of Mining and Energy shall keep a register of privileged power producers (Article
85). Privileged power producers shall enjoy priority on the organized electrical power
market over other producers who offer electrical power under equal conditions. Privileged
power producers shall be entitled to subsidies, tax relief, customs exemptions and other
relief in line with laws and other regulations on taxes, customs and other duties, i.e.
subsidies and other incentive measures (Article 86).
•
Article 139 of this Law defines “privileged” heat producers. They shall be producers using
renewable energy sources or waste in the heat production process who thus meet the energy
efficiency conditions. The competent body of the local self-government unit, town, i.e. the
City of Belgrade shall prescribe the conditions for granting the privileged heat producer
status, criteria for meeting those conditions and specify the method and procedure for
obtaining that status. The competent body of the local self-government unit, town, i.e. the
City of Belgrade shall keep the register of privileged heat producers (Article 140).
Privileged heat producers shall be entitled to subsidies, tax relief, customs exemptions and
other relief in line with laws and other regulations on taxes, customs and other duties, i.e.
subsidies and other incentive measures (Article 141).
However, the most important part of secondary framework and regulations for privileged power
producers has not yet been established. A system by which electricity produced by renewable
energy sources is promoted has not been decided yet, it seems that a feed-in tariff is favored over
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a quota system. Regulations to guarantee priority of feed-in of renewable electricity in the grid do
not exist. These unclear framework conditions do not create a market situation favorable to
investments in renewable energy projects. The situation is similar concerning promotion of CHP
plants.
Preparation process of the amendments on actual Energy Law is currently in progress (under the
responsibility of Ministry of Mining and Energy (MoME)). It is envisaged that the amendments
should define more precisely existing solutions introduce new terms, such as bio-fuels, and enable
introduction of incentive mechanisms for RES through secondary legislation.
1.2.12.
Turkey
Electricity Market Law No 4628 regulates the electricity market, including the autoproducers and
autoproducer groups most of which are cogeneration plants.
Secondary legislation of the Electricity Market Law incorporates provisions to exempt cogeneration
from certain requirements:
By-Law on Grid (Official Gazette: 22 January 2003, no. 25001), Article 21: Exemption from the
“minimum frequency control requirement” for cogeneration facilities having a total efficiency
over 70 % in terms of regional heating and commitments to supply heat and vapor to their
costumers.
By-Law on Licensing (Official Gazette: 04 August 2002, no. 24836) Art 19 and By-Law on
Balancing and Settlement (Official Gazette: 21 December 2004, no. 25677), Art18: Exemption
from the requirements of participation to balancing and settlement and of acting in compliance
with the orders of National Load Dispatch Center for cogeneration facilities having a total
efficiency of higher than 70% in terms of regional heating and commitments to supply heat and
vapor to their costumers.
EE Law: Exemptions for voluntary agreements: exemption from “energy intensity calculation”,
exemption from licensing requirement (for micro-cogeneration), exemption from the requirement
to establish a company (for facilities utilizing cogeneration for their own consumption) for
eligible cogeneration plants (having efficiency values above a certain threshold to be defined)
Law no.5346 dated 10.05.2005 on Utilization of Renewable Energy Sources for Electric Energy
Generation, Article 6: Legal persons licensed for retail sale shall purchase electric energy
according to principles laid down in this article from the RES certified plants which generate
electric energy from renewable energy sources under this Law and have not completed ten years
of operation. http://www.abgs.gov.tr/tarama/tarama_files/15/SC15DET_COGENERATION.pdf
1.2.13.
Ukraine
The owners of CHP plants (independently of plant capacity) have unhampered access to local power
grids and can sell produced power to individual consumers by contracts. Owners of qualified
CHP plants have right to sell produced power to Wholesale Power Market of Ukraine and to
consumers over all territory of Ukraine by direct contracts.
Ukraine has several nationwide taxes specific to the energy sector, which include:
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45
•
Surcharge on the effective tariff for electricity and heat, except for electricity produced by
cogeneration plants.
•
Surcharge on the approved tariff for natural gas for all consumer types.
•
Royalties for producing oil, natural gas and gas condensate, for natural gas transit and for
transportation of oil through main oil pipelines.
•
Fee for exploration activities. This fee is intended to create an economic mechanism to
compensate for exploration and prospecting costs financed by the state, and to collect funds
for financing further exploration.
1.3. EE standards, certification and labeling for equipment and
buildings
•
Energy efficiency standards
•
Harmonization of standards in the field of energy efficiency with European standards
•
Energy efficient equipment and appliance labeling
•
Modernized building codes
•
Building passports and labeling
1.3.1. Republic of Albania
Law on Heat Conservation in Buildings Nr. 8937 (12 September 2002) requires that all new buildings
constructed after the law’s entry into force shall be built according to established norms for
minimizing thermal losses, as well as provide installations for central or district heating.
The manufacturers and importers of energy appliances may not sell them to any other person in the
country unless they have affixed such appliances with energy labels. The data on the labels shall
be in the Albanian language and the label shall be placed visibly on the appliance.
The labels shall include data on the specific energy consumption of the energy appliance, its energy
efficiency in relation to the lowest and highest values of energy efficiency for the given type of
energy appliances, as well as on possible negative impact that its operation may have on the
environment and the health of people.
The details regarding the labeling of the energy appliances shall be stipulated by a regulation
approved by the Council of Ministers.
1.3.2. Bosnia & Herzegovina
No standards
1.3.3. Republic of Bulgaria
The technical rules and requirements related to energy efficiency in buildings are set out in the
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following Ordinances for:
•
ORDINANCE № 18 of November 12, 2004 for energy characteristics of sites
•
ORDINANCE № 19 of November 12, 2004 for certification of buildings for energy
efficiency
•
ORDINANCE № 20 of November 12, 2004 for the circumstances and the order of entry into
the register of persons performing certification of buildings and energy efficiency studies
and for receiving of information
•
ORDINANCE № 21 of November 12, 2004 for performing of energy efficiency study
•
Energy strategy of the Republic of Bulgaria
•
Public register under Art. 16 and Art. 18 of the EEA
•
Energy conservation and heat retention of buildings - in force since 1 March 2005
•
Technical rules and regulations for the design, execution and operation of facilities and
installations for the generation, transmission and distribution of HVAC systems in buildings
and of heat energy in force on 19 February 2006
•
Ordinances, norms, standards and regulations for design and execution of all types of
buildings – residential, public, administrative, industrial, etc. - in a process of harmonization
on the basis of European Directives, standards and practice.
The Minister of Energy and Energy Resources and the Minister of the Regional Development
and Public Works organized the development and enforcement of technical requirements and
norms (building codes) for annual energy consumption at different sites.
The Energy Efficiency Act provided for the preparation and refinement of all energy-efficiency
standards in order to harmonize those standards with European standards and to promote energy
efficiency among consumers (this requirement has not been carried out to date).
Every building may be certified according to an ordinance for certification of buildings, issued by the
Minister of Energy and Energy Resources and the Minister of the Regional Development and
Public Works. Each commissioned site – state or municipal property, with gross floor area above
1000 m2 shall be a subject to certification. The certificate shall be issued for a period of up to 10
years and shall be placed in a visible space.
1.3.4. Republic of Croatia
Energy Law: All electricity appliances have to be labeled by energy efficiency labels. The contents
and design of energy efficiency labels have to be regulated by sub-law document called An
Ordinance on Energy Efficiency Labeling of Households Appliances.
The Croatian legislation is aligned with the directive on the energy performance of buildings to the
extent that it partially covers renewable energy sources, passive systems, orientation of buildings
and energy performance certificates for new buildings.
Technical rules for heat savings and thermal protection of the buildings prescribe heating
requirements separately for residential and non residential buildings, define U values for windows
and balcony doors and oblige that every main project of the building contains heating
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requirements card, content of which is also prescribed. The obligation to fill in the card is on the
leading design engineer as well as on the performer of the construction works and it is used in
technical inspection of the building. The card must also be available for buyers and renters of the
building.
Heating-retention and energy economy aspects of buildings are regulated by the Building Act of
2004 and two technical regulations which only partially cover renewable energy sources, passive
systems, orientation of buildings and energy performance certificates for new buildings, whereas
cooling, lighting, regular inspections of boilers and air-conditioning systems, as well as
requirements for qualification and training of inspection personnel are not covered. Republic of
Croatia states that it intends to transpose articles 3, 4, 5 and 6 of the Energy Performance of
Buildings Directive by 2008, while full transposition and implementation of articles 7, 8, 9 and 10
is planned for the end of 2011. The directive foresees an additional period of three years for
Member States to apply fully the provisions on energy performance certificates (article 7) and
inspections of boilers (8) and air-conditioning systems (9) and independent experts (10). Republic
of Croatia is associated with the energy performance of buildings, Concerted Action, an EU
financed platform for Member States to exchange experience in the implementation of the energy
performance of buildings directive.
Energy Law, Article 13
•
(1) Manufacturers and importers of various products that consume energy shall be obliged to
indicate in a technical product specification a type of fuel or energy used under normal
working conditions. Pursuant to the provision of this Article, the manufacturers can or have
to put a label on a product indicating its energy efficiency
•
(2) The Minister shall prescribe the shape and content of such a label depending on the type
of product with respect to energy consumption, minimum energy efficiency requirements for
a product. The Minister will also determine which products must carry the label with energy
efficiency data.
•
(3) The provisions of this Article will not apply to products that use autonomous energy
sources.
Transposition of the 2005 Framework Directive on Eco-Design and the directive on ballasts for
fluorescent lighting is scheduled for 2008. The implementing directives on hot-water boilers, and
refrigerators and freezers have been transposed, including conformity assessments by accredited
bodies and market surveillance by the State Inspectorate.
1.3.5. Republic of Georgia
1.3.6. UNMIK
Pursuant to Article 14 of Law on Energy 2004/8, the draft Administrative Instruction Labeling
Energy Consumption and Energy Efficiency of Electric Household Appliances transposes the
relevant EU Directives to UNMIK. It includes appliances such as refrigerators, freezers, washing
machines, tumble dryers, dishwashers, lamps, air conditioners and baking ovens. The labeling
obligations shall come into effect by 1 January 2009.
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A new Construction Law No. 2004/I 50 was approved in May 2004, which includes the requirement
to provide thermal insulation according to climatic requirements.
The UNMIK Program for Energy Efficiency and Renewable Energy Sources includes in project B3
“Energy Efficiency Regulation in New Houses” foresees the preparation of a manual in Albanian
language for architects, contractors etc. explaining the regulations and how to apply them in
practice.
The Law No. 2004 / 9 on the Energy Regulator stipulates in Article 46: The tariff methodology shall
be based on the following principles:
Interruptible rates, load balancing rates and other mechanisms to improve energy efficiency and
demand side management shall be encouraged, including consideration of the development of
renewable energy sources.
1.3.7. Former Yugoslav Republic of Macedonia
Rulebook for construction of new buildings and reconstruction of existing ones from the aspect of
energy efficiency, where the EU Directive on energy performance of buildings will be transposed.
Rulebook for energy efficiency labeling of household appliances, where EU directives in this area
will be transposed.
In the framework of the “Solar Water Heaters” project there is a component for organizing a
campaign for solar thermal use in households
1.3.8. Republic of Moldova
Energy efficiency performance shall be included in state standards for equipment, appliances and
buildings. Performance standards for energy suppliers of power, heat energy and natural gas are
included in state standards. The Draft Energy Efficiency Law contains a provision for
certification and labeling of certain energy consuming equipment and energy resources.
1.3.9. Republic of Montenegro
EDS and the Energy Efficiency Action Plan up to 2012 propose:
• Urgent measures for the enforcement of the existing thermal insulation regulation with parallel
implementation of publicity and information dissemination campaigns to potential owners and
tenants to create a market demand and pressure for construction of energy efficient buildings and
systems,
• Incorporation of EE provisions and concepts in the draft Law of construction and spatial
planning, as well as planned EE Law,
• Development of new regulatory framework with the adoption the concept of buildings’ overall
“energy performance requirements” and in second phase, the “energy performance certificates”
in line with the Directive on the energy performance of buildings (2002/91/EC).
• Introduction of schemes for energy labelling and minimum energy performance requirements of
appliances and energy consuming equipment.
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•
•
Regulations for introduction of individual metering and energy cost distribution according to the
actual consumption.
Measures for promotion of low-energy buildings and incorporation of RES (especially passive
and active solar systems) into buildings’ energy systems.
Note: Under Action Plan 2007, a Working Group has been established to study and propose the
necessary legislative, regulatory and institutional requirements for promotion of EE in buildings. The
Working Group particularly examined the possibilities and requirements for transposition and
enforcement of the following directives:
• Energy performance of buildings Directive 2002/91/EC (EPBD),
• Labelling and standard product information of the consumption of energy and other resources by
household appliances (Directive 92/75/EEC and “daughter” Directives),
• Minimum efficiency requirements for new hot-water boilers, household electric refrigerators and
freezers and ballasts for fluorescent lighting. (Directive 92/42/EEC, etc.).
Up to now, Working Group has prepared Report for preparation of the Programme on legislative,
regulatory and institutional requirements for EE in Buildings. In addition, Working Group incorporated
EE provisions and concepts in the draft Law of construction and spatial planning. EE Law is planned to
be prepared by the Government in 2008 and it will define mentioned requirements. For this issue
international TA is needed.
In bilateral cooperation with Norwegian Government, currently ongoing project "Capacity Building on
Energy Auditing of Buildings" has main objective to increase local capacities and skills on Energy
Auditing of Buildings, and provide methods and tools supporting Montenegro to comply with the EU
Directive on the energy performance of buildings. One of the programme components is support Ministry
for Economic Development in development of regulatory framework for energy efficiency in the building
sector and assistance to the MEEU in developing an action plan for development of proper building
regulations for energy efficiency in the Montenegrin building sector.
1.3.10.
Romania
The Law on Efficient Use of Energy No. 199/2000 in its article 9 assigns the Ministry of Industry
and Resources to issue the EE technical regulations for large energy-consuming devices,
equipment and machinery; the Ministry for Public Utilities, Transport and Housing to coordinate
the development and establishment of technical regulations for energy efficiency and thermal
rehabilitation of construction projects; other ministries to issue (in cooperation with ARCE)
energy efficiency technical regulations for their spheres.
The importers and producers of the above-mentioned, large energy-consuming types of
equipment may not introduce them on the market unless in full compliance with the technical
regulations. They are also required to perform or apply for tests and measurements to certify their
conformity. The conformity certifications are done for a fee by the laboratories or specialized
authorities as notified by the appropriate ministries.
Law No. 372/2005 Transposing European Directive Regarding Energy Performance in
Buildings sets the conditions for: the general framework of the: methodology used to calculate
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the building energy performance; application of the minimal energy performance requirements
for new buildings; minimum energy performance requirements for existing buildings; energy
certification of all buildings; periodic checkup of the boilers and inspection of ventilation systems
in all buildings; and the evaluation of the heat installations with boilers older than 15 years.
The branch ministry approves the methodology used for calculations.
A building energy performance certificate is issued for 10 years and is accompanied by
recommendations for reduction of costs through improved energy performance of the building.
Ministerial Ordinance No. 263/2007 provides methodology for the implementation of the Law
372/2005.
Law Approving the Government Ordinance No. 29/2000 on Thermal Rehabilitation of the
Existing Housing Stock and Stimulation of Energy Saving No. 325 of May 27, 2002 sets the legal
framework for the thermal rehabilitation and modernization of residential buildings and their
installations to improve the hygienic and thermal comfort conditions, as well as to reduce the heat
losses, energy consumption, maintenance costs for water heating and the polluting emissions
generated by production, transportation and consumption of energy.
1.3.11.
Republic of Serbia
Energy Law (No. 84/2004, “Official Gazette of the Republic of Serbia”) created an essential basic
supposition for the implementation on energy efficiency measures in different fields.
There are building codes which contents, among the rest, the following standards: Calculation
methods of heat transfer coefficient in buildings, Calculation of water vapor diffusion in
buildings, Calculation of the shading factor and calculation of the temperature oscillation delay
through the exterior building structures, Technical conditions for design and construction of the
buildings, Thermal techniques in the building stock - air leakage of dwellings.
The Serbian Energy Efficiency Agency (SEEA) has been submitted to the MoME a draft proposal of
the “Regulation on labeling for electrical household appliances” based on relevant EU Directive.
Based on SEEA`s initiative the Law on Rational Use of Energy is under preparation (responsible
authority is MoME) and it should cover different elements including the EE labeling.
SEEA in cooperation with German Energy Agency (DENA) organized a seminar on energy
efficiency in building in light of EU Directive 2002/91/EC on the energy performance of
buildings. Ministry of Infrastructure of Republic of Serbia is responsible for the legislation in a
building sector.
SEEA participates in two projects funded by the Ministry of Science from their budget allocated for
the energy efficiency program. First study is “Usage of European procedures for calculation and
determination of allowable specific energy consumption necessary for heating new and existing
residential buildings” in cooperation with group of faculties and institutes leaded by Faculty of
Mathematics, Belgrade. The second project is study "Overview of EU legislation for evaluation
of the energy efficiency indicators of household appliances" in cooperation with Technical
Faculty Čačak. The studies should also result in a proposal for revision of legislation and
technical standards.
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The Serbian parliament adopted in May 2005 the Energy Sector Development Strategy of the
Republic of Serbia by 2015, where energy efficiency improvement and wider use of renewable
energy sources (RES) are establish as prioritized objectives. In January 2007 Serbian Government
adopted the Energy Sector Development Strategy of the Republic of Serbia by 2015
Implementation Program for the period 2007-2012” (POS 2007-2010) (15 parts including Energy
Efficiency and RES). With regard to the building sector the Program envisages introduction of
building energy passport system.
In general, the conclusion can be epitomized upon the following: the existing legal framework is not
enough mandatory in terms of energy efficiency; the existing technical standards need to be
revised and new adopted and the control of an implementation of existing regulations improved.
1.3.12.
Turkey
“Turkey has no framework for a holistic approach as demanded by the directive on the energy
performance of buildings. Heating-related aspects of energy efficiency of buildings are regulated
by the by-law on heat insulation in buildings of 2000, from whose scope existing buildings and
villages are however exempted, and which do not cover cooling, lighting, renewable energy
sources, passive systems orientation of buildings, energy performance certificates, regular
inspections of boilers and air-conditioning systems, and the qualification and training of
inspection personnel. Nor is there an established monitoring mechanism to reflect the results of
application since 2000. Turkey is currently not associated with the energy performance of
buildings Concerted Action, an EU financed platform for Member States to exchange experience
in the implementation of the energy performance of buildings directive.
Regarding the Directive on End-Use Efficiency and Energy Services, The Energy Efficiency Law
encompasses provisions on administrative structuring, financial instruments and incentives,
awareness raising and the establishment of a market for energy efficiency services: (d) A
regulation to be jointly prepared by the Turkish Standards Institute and the General Directorate
and issued by the Ministry of Public Works and Housing shall lay down the principles and
procedures for the energy performance in buildings that covers norms, standards, minimum
performance criteria, data collection and control procedures on architectural design, heating,
cooling, heat insulation, hot water, electrical installation and lighting to be used in buildings used
for residential purposes with total construction surface areas as indicated in the regulation,
commercial buildings and service buildings. In case of acts contrary to the provisions of the
regulation, the relevant administration shall not permit the utilization of such buildings.
An energy identity certificate shall be issued under the construction projects prepared according
to the regulation to be issued by the Ministry of Public Works and Housing. The energy identity
certificate shall, as a minimum, have the information on the building's energy requirements,
insulation characteristics, efficiency of heating and/or cooling systems, energy consumption
classification. The other information that must be included in the certificate and procedures and
principles relating to the practice including the renewal of the certificate and existing buildings
shall be laid down in a regulation to be jointly prepared with the Ministry and issued by the
Ministry of Public Works and Housing. For buildings outside the adjacent areas and with less
than one thousand square meters of construction surface area, it is not mandatory to have an
energy identity certificate.)
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During the studies conducted at industrial establishments and buildings, it is mandatory to use
devices calibrated and labeled by accredited national or international organizations.
Permission shall not be granted for the sale of those boilers and burners in the burning facilities,
apartment heaters and combination boilers which do not meet the minimum efficiency thresholds
specified by the regulation to be jointly prepared with the General Directorate and issued by the
Ministry of Industry and Commerce.
Principles and procedures for the classification and minimum efficiency specification of electric
motors, air-conditioners, electrical home appliances and light bulbs shall be laid down in a
regulation to be jointly prepared with the General Directorate and issued by the Ministry of
Industry and Commerce, and those not meeting the minimum thresholds shall not be allowed to
sell.
As regards labeling, most EU directives have been transposed and are being implemented. A draft bylaw on air-conditioning is pending some amendments to the directive on refrigerators and freezers
concerning the introduction of the new categories A+ and A++ are not yet transposed.
Transposition of the Eco-Design Framework Directive of 2005 has not yet commenced in Turkey.
The directives on minimum energy efficiency requirements of hot-water boilers, refrigerators and
freezers, and fluorescent lighting are transposed, as are Harmonized European Standards. As
regards conformity assessments, market surveillance is being carried out on almost all industrial
products by the Ministry of Industry and Trade, which also imposes fines and sanctions.
Turkey states that it may consider future participation in the Intelligent Energy Europe program,
while it is already conducting some similar activities on the national level. Turkey does not
participate in the "Energy Star" program, the voluntary labeling program for office equipment run
jointly by the EC and the US. Turkey states that there is no national legislation or voluntary
scheme regarding the energy efficiency of office equipment in Turkey. There is however a
circular from the Prime Minister of 1997, obliging public procurement officers to choose lowenergy consumption products marked "Energy Star".” Screening Report Turkey, p.8
http://www.abgs.gov.tr/files/tarama/tarama_files/15/screening_report_15_tr_internet_en.pdf
1.3.13.
Ukraine
Energy efficiency codes and standards serve as the basis for imposing economic sanctions for
inefficient use of fuel and energy resources, and production of inefficient appliances and
equipment.
The state (mandatory) energy standards indicate the net rational energy consumption rates, define the
methods for determining energy demand and organizational-methodological aspects of energy
saving; define data collection methods for identifying energy losses; set requirements for EE
technologies, secondary energy use and renewable energy sources.
Certification of energy efficient buildings and facilities conducted on the basis of EE standards.
The energy usage indicators for the most energy-intensive production and technological processes are
entered into a national standards registry. Fuels and energy consumption norms and rates should
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be included in the technical passports (technical document included in the packaging for a
product describing the technical features, specification and energy performance) of equipment,
regime charts, technological instructions and user manuals, and also in the technical conditions
and passports for all types of fuels and energy consuming equipment and appliances.
The Cabinet of Ministers issues a list of the types of energy saving equipment and corresponding
norms of depreciation that are allowable for tax deductions.
1.4.
Requirements for metering and consumption-based billing
•
At substations
•
At end-user
1.4.1. Republic of Albania
1.1.11.1. See section A2-1 about the action plan for the national power corporation to meter all of
its customers. Republic of Albania does not have district heating
1.4.2. Bosnia & Herzegovina
There is a law on federal level regarding heat metering. It says that heat should be individually
metered and charged. However it is not yet in practice. 18
1.4.3. Republic of Bulgaria
Energy Act:
•
Article 140. (1) The share distribution of heat among customers in a condominium-project
building shall be performed by means of:
i. Commercial metering devices for the quantity of heat in the subscriber sub-station;
ii. (Amended, SG No. 74/2006, effective 8.09.2006) heating share distribution devices:
individual allocators conforming to the effective standards in the Republic of Bulgaria, or
individual heat meters;
iii. (Amended, SG No. 74/2006, effective 8.09.2006) household hot-water supply share
distribution devices: a common household hot-water meter and individual hot-water
meters installed on all branches from the building hot-water supply system to the
properties of the customers;
iv. Customers connected to a single subscriber sub-station in a condominium-project building
shall employ heating share distribution devices of one and the same model, provided by
one and the same merchant or approved by the said merchant for use in the building.
v. (Amended, SG No. 74/2006, effective 8.09.2006) The building heating and household
hot-water supply systems shall be common property of the condominium project.
18
by Lena Bratic, CEEF, BIH.
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vi. (Amended, SG No. 74/2006, effective 8.09.2006) The heating units, the appurtenant
control fittings, the branches from the building heating systems, the branches from the
hot-water supply systems and the share distribution devices referred to in Item 2 of
Paragraph (1) and the individual water meters referred to in Item 3 of Paragraph (1) shall
be owned by the customers.
The Bulgarian government has mandated metering for all district heated buildings, while end-users
are encouraged to pay for the installation of heat cost allocators (HCAs) and thermostatic radiator
valves (TRVs) that will measure their portion of heat consumed in the building and enable them
to regulate consumption. An installment plan helps consumers bear the costs of the HCAs and
TRVs although additional assistance is needed for weatherization and complimentary
technologies such as foil radiator sheets.* The district heating companies oversee the installation
and implementation of HCAs and TRVs performed by private companies that also handle meter
reading and billing of customers.
1.4.4. Republic of Croatia
Obligatory individual heat metering for new buildings
The Act on Production, Distribution and Supply of Heat Act gives the right to the consumers to
install individual heat meters. For that, the owner has to have the approval of heat distributor. If
the approval is denied, the complaint can be referred to the HERA (Croatian Energy Regulatory
Agency) and its decision is final. The costs of the installation of individual metering and billing
will be prescribed by the special Rulebook to be set up by the Minister.
Act on the Production, Distribution and Supply of Thermal Energy (OG 42/05 Art. 36):
Existing buildings: the energy service company responsible for distribution of thermal energy
shall at its own cost install the thermal energy flow control instruments and the heat meters in all
thermal stations, and tariff customers on collective heat meter (building-level or substation-level
metering) may, with heat distributor permission, install heat cost allocators.
•
Installation of new generations of automatic control in heating stations in customers'
buildings, which improves heat consumption control in individual buildings and/or reduces
unnecessary consumption. This measure is in trial – pilot phase.
•
Installation of individual metering of heat energy in customers' apartments, so that
customers can control their own consumption and thereby costs related to the heating of
their living quarters; this significantly reduces the consumption of heat energy and thereby
indirectly contributes to environmental protection due to reduced emission of harmful gases
and particulates into the air. This action is stipulated in the Low. For now it is implemented
in all new buildings and some share of reconstructed buildings.19
1.4.5. Republic of Georgia
Tbilisi is the largest consumer in the country. JSC “Telasi” is Distributor Company in Tbilisi.
Company started installation el. meters in 1999, and 97 % of households have meters. Every
month consumers are receiving bills and they must pay for rate.
19
Alliance to Save Energy. Urban Heating in Republic of Croatia
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JSC “Telasi” consumers pay for el energy consumption
Tariff quantity (kWh/
Consumption electricity Georgian tetri, VAT
included)
For private person
Include 100 kWh
13,48
from 101 till 300 kWh
16,0
Up to 301 kWh
17,69
For juridical person
1 kWh
17,69
By categories
I category
I category
III category
III category
1.4.6. UNMIK
The UNMIK Program for Energy Efficiency and Renewable Energy Sources (KPEERES) 2007-2009
includes in project B4 “District Heating Demonstration Project” which provides a report on
experience made with demonstration projects, implementation of demonstration project and an
information campaign.
In Gjakova, a small pilot project was started including thermostatic valves and heat cost allocators to
100 radiators. In Pristina, a project granted by Swedish funds was completed including control
valves on the primary circuit, and installation of heat meters in every substation. As a result, a
new tariff structure was put in place for subsequent heating seasons.
1.4.7. Former Yugoslav Republic of Macedonia
“The consumption of heat energy on building level is controlled by devices installed at heat
substations: mixing valves determining water inlet mass flow and temperature in accordance with
outlet air temperature, following preset diagram (centralized regulation – open system), pressure
controllers, heat meters. Temperature control of each substation (individual houses or multiapartment buildings) is centralized by telemetric control. Improving the efficiency of the end-use
is difficult under existing conditions it is not possible. The buildings are designed with no
possibility to measure heat consumption individually. Everybody is paying the same rate
depending only to m2. Nobody is encouraged to invest in better insulation, temperature control
with thermostatic valves, or by installing timers. Individual houses, where heat consumption is
measured, are not willing to invest in these measures, because the price part for engaged capacity
is affecting very much the end price – savings cannot reduce the price too much.”
Urban Heating in the Republic of Former Yugoslav Republic of Macedonia, p.59
1.4.8. Moldova
For substations:
•
Government Decision # 434 of 09.04.98 on heat energy supply:
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i. Art.71. Heat metering is performed by heat meters installed at the heat installation
division border according to the contract.
ii. Heat meters should be tested metrologically, registered legally, verified in accordance
with existing technical norms.
iii. Heat distributors acquire and install meters for housing buildings at their own expense
(while the Law on Energy, art 14 states that metering devices are acquired at the expense
of consumers).
iv. Heat meters acquired by consumers must correspond technical characteristics provided by
the technical documentation of the heat installation and should be coordinated with the
supplier.
v. Art 74. Heat meters are installed at the point where it’s easy to take records by both a
supplier or any other authorized parties
vi. Art.76. Heat meters are installed and sealed with obligatory presence of an authorized
consumer’s representative.
•
Government Decision #191 on utilities supply:
i. Only meters approved by the Department of Standardization and Metrology, verified and
sealed by the licensed organizations will be taken into account
ii. Full exclusion of the opportunity to use other entries of the same destination, unequipped
with meters.
•
No consumption based billing has been practiced in Moldova in multi-family buildings
requiring horizontal heat system.
1.4.9. Republic of Montenegro
This requirements have up to now only briefly elaborated in documents prepared under the EAR Project
"TA to the MEEU". EE Law will probably defined mentioned requirements. For this issue international
TA is needed.
1.4.10.
Romania
At the substations the process is ongoing under the projects of rehabilitation of DHS
Regarding end-users the process must be completed until June 2008.
1.4.11.
Republic of Serbia
There are 55 local District Heating Companies in Republic of Serbia. Present situation is that about
40% out of them have installed heat meters at the heat substations. But, the consumption-based
billing, which is under responsibility of local self-governments, has not been adopted yet. SEEA,
with the financial support of the European Agency for Reconstruction (EAR), implemented four
demonstration investment projects (in the cities of Pančevo, Subotica, Kraljevo and Novi Pazar)
in order to promote new approach to billing – based on heat energy consumption. The projects are
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included modernization of heat substation, thermostatic valves and heat cost allocators for
radiators. Similar pilot-project was implemented in Municipality of New Belgrade. At this
moment the city of Subotica, Pozarevac and Backa Palanka heve 100% metering. Where Novi
Sad, Zrenjanin, Niš and Belgrade have moved close toward metering 100% at the substation
level. Other smaller cities (eg. Sabac) have metering of around 40 to 50% at the substation level,
but have launched tenders for the procurement of heat meters from their own funds
City of Belgrade and several towns decided to introduce consumption-based billing in phases starting
from 2008. Due to technical reasons at the first stage the measuring will be at the building
substation level. MoME plans to supply local District Heating Companies with heat meters for all
the substations, which will be paid from National Investment Plan (NIP) funds. This can be
expected in 2009 at the earliest. The KfW programme “Rehabilitation and modernization of
District heating Systems in Serbia” – Phase III, in 6 cities in Serbia (Kraljevo, Sombor,
Kragujevac, Niš, Pirot and Zrenjanin) also call for the introduction of heat metering at the
substation level, and the introduction of consumption based billing by the end of the project
(2009). The local governments of the mentioned cities are obliged to adopt the tariff systems
before the heating seasons 2008/2009.
1.4.12.
Turkey
EE Law, Art 7
c) Buildings with a central heating system shall use systems that allow the
distribution of heating costs based on the quantity of heat consumption by central or local heat or
temperature control devices. Projects prepared contrary to this shall not be approved by the
relevant authorities.
1.4.13.
Ukraine
Program on the step-by-step installation of heat and water meters in housing buildings and regulation
of heat and water consumption for 1996-2002 approved by the Cabinet of Ministers in November
1995
The following regulations provide requirements for installing the heat meters:
•
“Rules for supplying water and heat services to the population (Decision of the Ministers
Cabinet №1497 as of 30.12.97.);
•
“Temporary rules for heat supply and consumption” (Order of the State Housing-Utility
Department and the Ministry of Energy as of 01.07.97. №57/112/.
•
“Rules on the use of heat energy” (approved by a joint Order of the Ministry of Energy and
Gosstroy on 28.11.99 №307/262)
A physical or juridical person willing to install a heat meter should file an application to the heat and
water supplier to receive technical conditions for installing it. After that one should order a
technical design for the same installation. The design should be coordinated with the heat
supplier. After the heat meter is installed one should invite a commission to sign a Delivery Act.
Metrological departments shall verify the accuracy of the installed heat meters regularly. A
verifying period for heat meters is 3 years and for water – two years.
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http://www.business.ua/i425/a7022/
1.5. Procedures for establishing homeowner or housing
associations
•
Allowing them to contract for utility services, and to borrow for project implementation.
1.5.1. Republic of Albania
Rights and obligations of co-owners of apartment buildings are governed by the Civil Code, approved
by Parliament in August 1994. According to the Code, assemblies are to be established for
administration of the building. An assembly 20 (or association) is to be made up of the owners of
each floor, or separate apartment unit of each floor, who co-own the building. The common
expenses for maintenance, repairs, and normal improvements of the building and its surrounding
common property must be approved by the assembly through a simple majority vote, whereas the
expenses for major improvements or renovations are decided by majority of the co-owners
possessing at least 75% of the shares in the building.
The main rights and responsibilities of an assembly are:
ƒ
Approve the regulations for administration of the building, which are based on typical
regulations for co-ownership of buildings approved by the Council of Ministers.
ƒ
Create a reserve fund for common expenses, and determine the fund’s annual balance.
ƒ
Approve the expenses for repairs and projects that the assembly agrees to undertake during
each year, and divide those expenses among co-owners.
1.5.2. Bosnia & Herzegovina
The Law on Privatization of Socially Owned Apartments provides no guidance on organization or
management of apartment buildings after privatization. Rather, it authorizes the cantons to pass
regulations on the operation of housing after privatization. The first such regulation has been
passed in Tuzla and is expected to be a model for other cantons (Rabenhorst, 2000).
Co-owners under a contract with a DH Company Maintenance – public enterprises -mandatory
1.5.3. Republic of Bulgaria
Energy Act
Article 149. (1) Heat shall be sold on the basis of written contracts under general conditions,
20
Unfortunately in nearly all cases, the owners of the apartments did not form assemblies or associations of building management
after privatization as defined in the Civil Code. Contracts are mostly made to public companies/self help. Condominiums do not exist
in practice although the draft law on Condominiums was developed in 1993.
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concluded by and between… (4) a heat transmission company and associations of heat customers
in a condominium-project building;
Article 151 (1) Heat customers in a condominium-project building may establish an association
wherewith the heat transmission company may conclude a contract for sale of heat to be used by
the customers in the said building.
Article 152. (1) The association referred to in Article 151 (1) herein shall be a voluntary
association of all heat customers in a condominium-project building. The registration of any such
association shall be affected according to the procedure established by Chapter One of the Notfor-Profit Legal Entities Act.
(6) The incorporators shall adopt a Charter which must state: 1. the corporate name of the
association; 2. the purposes and the means for attainment thereof; 3. the seat; 4. the amount of
initial contributions; 5. the objects of economic activity; 6. the governing bodies; 7. the powers of
the bodies of the association; the duration wherefore the association is incorporated, if applicable;
10. The procedure for determination of the amount and the manner of transfer of contributions.
(7) Each member shall have the right to participate in the management of the association, to stand
informed of the operation of the association, to benefit from the property thereof and from the
results of the activity according to a procedure established in the Charter. Each member shall be
obligated to make contributions in an amount provided for in the Charter. Membership shall cease
according to the procedure and in the manner established in the Charter.
(10) The General Meeting shall be composed of all members of the association who are heat
customers.
(13) The General Meeting shall be called to a session by the Manager on his or her own initiative
or on a requisition of one third of the members of the association. Should the Manager fail to
transmit a written notice of convocation of the General Meeting within one week, the meeting
shall be called by the interested members or by a person authorized thereby.
(16) For the valid transaction of business at any session of the General Meeting, more than one
half of all members shall have to be present there, save as otherwise provided for by the Charter.
Unless the required quorum is present, the session of the General Meeting shall stand adjourned
to a time within one hour thereafter at the same venue and with the same agenda and can be held,
with the attendance of whatever number of members have presented themselves, save as
otherwise provided for in the Chamber.
1.5.4. Republic of Croatia
In Republic of Croatia, management and maintenance of apartment houses, including regular
operation, improvements and other works, are regulated by the Law on Property and Ordinance
on Buildings Maintenance. Maintenance of apartment houses is financed by the co-owners on the
basis of the contract with public or private firms registered for house management and
maintenance. Only registered companies can provide service for large buildings” (Council of
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Europe Network Country Reports, 2001).
1.5.5. Republic of Georgia
In 2007 Tbilisi Municipality started initiation for forming residential associations. From August
2007, in all buildings which are higher then 3 floors may be established residential associations
(condominiums), but for nowadays, in accordance to the information of Tbilisi Corp there are
3400 residential associations legally established. But nowadays forming condo minimums is
voluntary. In residential building all households must sign the form for forming associations, if
most of households will against of this, they can’t form condominium. After forming associations
households choose a person who is responsible for operation and maintenance of the building.
From the same period, Tbilisi Municipality started a program, which supported only legally
established residential associations aiming to co finance reparation of roofs, elevators, internal
(building) water utility systems, gutters, main entrance doors and fix boundaries territories
between buildings. Buildings residents with co-financing of Tbilisi Municipality for above
mentioned reparation works co financed: for roof 25%, for elevators and for water utility systems
30%, and for gutters, main entrance doors and boundaries territories between buildings 50%.
Unfortunately associations can’t borrow money for repair works.
1.5.6. UNMIK
No procedure in place.
The evaluation included in section 3 above shall deal also with the role of associations of house
owners and residents.
1.5.7. Former Yugoslav Republic of Macedonia
“There are no housing associations, or private housing maintenance companies in Former Yugoslav
Republic of Macedonia.” Urban Heating in the Republic of Former Yugoslav Republic of
Macedonia, p.59
1.5.8. Moldova
Law on Privatization of the Housing Fund, art.23: “owners of the privatized apartments (houses)
and owners (entities) of non-privatized apartments conclude with utilities direct contracts or as
members of the HOA pass right to the HOA.
«Methodology for calculation of privatized apartments, premises, internal systems and associated
land payment” (Annex 4 to the Law on Privatization of the Housing Fund), p.2: «Apartment
(house) owners – members of the HOA make contracts with the HOA on housing maintenance,
and the Association in its turn makes such contracts with utility enterprises –on favorable
conditions or competitive basis or provides these services with its own resources. The list of such
works/services, payment procedures are established by the Contract on Housing Maintenance
concluded between an HOA and its members.
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HOA By-law: Since the moment of being registered, an Association becomes a juridical person, has
an individual balance, a bank account and other accounts within the financial institutions, can
conclude contracts on its behalf and fulfill the obligations.
Government Decision on Heat Supply Nr.434 from 09.04. 98, art. 20 & 21, “in а residential
building heat supply contract is concluded with an HOA, and otherwise with its authorized
person, tenants or the owner.
Government Decision # 191 on Utility Services, p.3: «Utilities are delivered to apartment owners
either by an HOA, utility supplier or Manager of the Housing Stock.”
1.5.9. Republic of Montenegro
EDS and the Energy Efficiency Action Plan up to 2012 takes into consideration this issue and foresees
following activities:
• Financial incentives to promote individual metering and heat cost allocators in existing
installations, were applicable,
• Information dissemination and marketing activities to promote the culture of common actions
(not restricted to EE) in multi-ownership buildings,
Encouragement to the judicial system for a more stringent enforcement of the law in case of non-payment,
non-fulfilment of obligations for proper maintenance or illegal constructions/ modifications multiownership buildings.
1.5.10.
Romania
According to the Housing Act of 1996, in Romania, the management of multi-unit buildings is the
responsibility of the association of owners (HOA). The associations’ rights and obligations are:
approving and amending the association’s budget, collecting financial contributions from
association members, imposing penalties in case of late payments, concluding contracts and most
importantly, managing, maintaining, repairing, replacing and modifying the common parts of the
buildings. The HOA also approves or amends decisions on rules and regulations, monitors the
condition of the building and keeps the building’s technical logbook updated. Legal or natural
persons, associations, public agencies or specialized companies appointed by HOA can manage
the condominium. (ECE, 2000).
Gov. Ordinance No. 73/2002 regarding organization and running of public services for district
heating systems.
Law No. 211/2003 stipulates for provision of financial support for thermal rehabilitation of
multi-story buildings.
1.5.11.
Republic of Serbia
Operation of a Homeowners’ Assembly is precisely defined by the Law on Residential Buildings
Maintenance (No. 44/95, 46/98 and 1/01, “Official Gazette of the Republic of Republic of
Serbia”), Decree on Maintenance of Residential Buildings and Dwellings (No. 43/93, “Official
Gazette of the Republic of Republic of Serbia”) and Decision on Building Order in Residential
Buildings (No. 33/93, 4/94, 2/95, 6/96, 12/96, 14/94 and 6/99, “Official Gazette of the City of
Belgrade”).
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Law on Residential Buildings Maintenance
III Management of Residential Buildings
Article 17.
Homeowners’ Assembly is authorized to make valid decisions provided that more than one half
of members are present. Homeowners’ Assembly makes decisions related to building regular
maintenance by the majority of votes of the homeowners in attendance.
Homeowners’ Assembly makes decisions related to building investment maintenance by a mutual
agreement of the members who own more than a half of total area of dwellings and other specific
building parts. It is also considered that the voting has been taken if the owners of the dwellings
and other specific building parts provide a written agreement in accordance with the decision
making criteria stipulated by this law.
1.5.12.
Turkey
According to Administration Plan of the Immovable Property Ownership Law, ARTICLE 27:
The main landed estate is governed by the board of immovable property owners and the
practices of administration is negotiated among the members of the board with the obligatory
terms reserved in the law. The immovable property owners gather for an annual meeting (at least
once a year). If the date of the meeting is not indicated in the administration plan, they should
gather once, on the first month of the year.
The board of immovable property owners may also gather whenever they feel that there is any urgent
need to do so. Each member of the immovable property owner should be notified about the date
of the urgent meeting at least fifteen days before the determined date of the meeting. This
notification should include the reason for the gathering and be signed by all the immovable
property owners. Any owner, who resides elsewhere external to the main building, has to be sent,
by mail, a written acknowledgement. The notification should make clear the venue and the date of
the following gathering in the case where there is no majority of owners attending the initial
meeting.
The board of immovable property owners attend a meeting only with a qualified majority, which is
more than half of the total number of immovable property owners. All decisions are taken by
majority vote.
If the first meeting can not be held due to the lack of qualified majority, the decisions are taken by
majority votes among the participants of a second meeting which has to be held within a week at
the latest.
The board of immovable property owners attend a meeting only with a qualified majority, which is
more than half of the total number of immovable property owners. All decisions are taken by
majority vote.
If the first meeting can not be held due to the lack of qualified majority, the decisions are taken by
majority votes among the participants of a second meeting which has to be held within a week at
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the latest.
http://www.holidayvillage.info/Flex/Site/Page.aspx?PageID=6753&Lang=UK
1.5.13.
Ukraine
Procedure for establishing Homeowner Associations of Multipartite Buildings (HOA) is regulated by
the Law on Associations of Owners of Multi-family Buildings. HOA is created by the owners of
the privatized apartments/premises or an owner of the building. To create an HOA it is necessary:
•
create a group of initiative people (min 3 apartment -owners of the building/premises)
•
conduct a general meeting with participation of apartment-owners (more than 50%) and
representatives of the local public authorities;
•
take a decision on creation of an HOA by voting
•
discuss and adopt the by-law
•
chose administration council and auditors
•
register HOA statuary documents according to the procedure established by the Cabinet of
Ministers of Ukraine
•
According to the article 22 of the Law on Associations of Owners of Multi-family
Buildings, if an HOA acts as an Administrator itself, it may sign collective contracts with
utility suppliers but this is not mandatory.
Law on Heat Supply: heat supply contracts are signed between heat energy producers and
the balance holder of the housing buildings and constructions. And the balance-holder or its
authorized person in its turn signs contracts with apartment owners on providing utility
services.
The borrowing capacity of HOAs for any maintenance or EE measures is limited due to
legal limitations and the lack of property that can be used as collateral. The law on
Associations of Owners of Multi-family Buildings doesn’t provide the possibility of
acquiring land as HOA’s property once it is established. Another problem is with auxiliary
premises which cause conflicts between HOAs and local public administration. Common
areas (like a cellar, roof) are not the subject of privatization while administration treats it as
its own property.
1.6.
Requirements for municipal energy planning
•
Municipal energy planning/management
•
Municipal heat plans
•
Municipal zoning by heating options
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1.6.1. Republic of Albania
1.1.11.1. A donor (UNDP) funded project demonstrated the process and potential benefits of local
energy planning and energy efficiency improvements in the Republic of Albanian
municipalities of Korca and Maliq.
1.6.2. Bosnia & Herzegovina
No requirements.
1.6.3. Republic of Bulgaria
Energy Efficiency Act:
Art. 8. The regional governors shall organize the development and the implementation of regional
programs for energy efficiency and shall interact with the bodies of the local self-government and
local administration.
Art. 9. (1) The municipal councils shall adopt programs for energy efficiency under art. 10, para 4
and 5, as well as for:
•
(amended - SG 55/07, in effect from 06.07.2007) renovation of the building stock,
administrative and business buildings on the territory of the municipality for the purpose of
implementing energy efficiency measures;
•
introduction of energy saving outfits for outdoor lighting of settlements and in public
buildings;
•
other measures for energy efficiency raising.
•
(2) The mayors shall organize and implement the measures stipulated by the municipal
programs for energy efficiency, providing targeted resources in their budgets for their
realization.
The Environment Protection Act
In terms of their objectives, the municipal programs for energy efficiency and the use of
renewable energy sources are close linked to the programs for protection of the environment,
which the Mayors of municipalities should work out in compliance with Article 79 of the
Environment Protection Act. Municipal energy efficiency projects, which have been identified as
priorities in the municipal environmental programs, might obtain financing from the state budget
or from the national funds (Article 80).
The Territory Planning Act
The law defines the responsibilities of local authorities with respect to construction, maintenance
and repair of the technical infrastructure of the area of the respective municipality (Articles 64, 67
and 71). It formulates the requirements with respect to the energy supply networks and facilities heat transportation networks, gas pipelines, DH substations (Article 90), power distribution
substations (Article 91), as well as outdoor public lighting, which should mandatory be provided
by the local authorities (Article 92). Technical design or working design investment projects
should be consulted with and endorsed by the Chief Architect of the municipality and checked for
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compliance with the detailed spatial development plan and the built-up rules and standards
(Article 145). Every year the Council of Ministers approves at the proposal of the Energy
Efficiency Agency a list of the sites, which should be aligned to the requirements for energy
efficiency (Article 169, Paragraph 5).
The Regional Development Act
The main objective of the Regional Development Act is to create the necessary conditions and
pre-conditions for a balanced and sustainable development of the regions in the country.
According to Article 6, six planning regions have been set up, in which regional development
councils shall be created and regional development plans shall be worked out. The objectives and
development priorities of the individual municipalities are defined in their municipal development
plans (Article 14), which are worked out in compliance with the district strategy. The municipal
plan contains initiatives of the municipality with respect to sustainable local development and it
implemented on the basis of a program approved by the municipal council. The program should
specify the measures, projects and activities, as well as the necessary human and financial
resources for their implementation (Article 18).
“Guide for municipal decision-makers and experts”
http://www.eneffect.bg/images/upload/team/Biblioteka/izdania%20GEF/EN%20Editons/MEP.pdf
No restrictions on the use of heat source.
1.6.4. Republic of Croatia
Law on Energy: 7 Local and regional governments and self-governments are obliged to include in
their development plans their energy needs and the manners in which they will meet them. These
documents must comply with the national Energy Strategy and the Strategy Implementation
Program
1.6.5. Republic of Georgia
Not available
(Under process ”Tbilisi city energy efficiency conception paper” which is preparing by EEC,
ENSI (Norwegian Energy Saving Comp) and City Hall EE team )
1.6.6. UNMIK
The Ministry of Energy and Mining (MEM) and the Ministry for Local Government (MLG)
developed a draft Administrative Instruction on establishment of energy offices at municipal level
to take care of energy efficiency, renewable energy sources and local energy planning. These
energy offices should be established within existing departments for public utilities and with
personnel in place.
1.6.7. Former Yugoslav Republic of Macedonia
Energy Law: Article 17: Based on the strategy defined on energetic development, the public
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enterprises shall adopt a Development Program. The Development Program on Public
Enterprises, established by the Government of Republic of Former Yugoslav Republic of
Macedonia, is approved by the Government of Republic of Former Yugoslav Republic of
Macedonia and the Program on Development of Public Enterprises, established by the
municipality and /or city of Skopje, is approved by the municipality and/or city of Skopje upon a
prior opinion issued by the Ministry competent for the matters related to energy.
1.6.8. Republic of Moldova
In 2002-throughout 2003, the ex Ministry of Energy in cooperation with the Power Institute and the
leading designers have prepared 36 heat plans for 36 cities of Moldova. The plans were of the
recommending nature and provided heat options solutions to the regions of Moldova.
In the period 2003–2006 over 700 new heat stations were built aiming to provide heat supply to
consumers across the country while financed from funds allocated from the local and state
budgets, as well as from other sources of financing, such as the Social Investment Fund of
Moldova, the Energy II Project, donations and grants amounting to 204,5 mln. MDL. In 2006,
237 units alone were built (investment: 119 mln. MDL). This trend will continue in the future.
For the period 2007-2009 it is foreseen that another 874 sources of heat supply will be built and
upgraded absorbing a total investment estimated at 268,5 mln. MDL. Priority will be given to
heat supply in rural area establishments used for social, cultural and educational purposes. As
primary energy resources there will be used natural gas and local renewable energy sources (solar
energy, solid, liquid and gas biofuels). Within the framework of promoting renewable energy
from agricultural waste financed through a grant of the Global Environment Fund, two heat
stations using biomass have already been built to supply heat to social facilities in the Sangerei
and Stefan Voda districts. For 2007-2008 the building of four additional similar stations has been
scheduled. There will be stimulated construction of heating and hot water supply systems with
solar collectors that will create local supply networks operating in parallel with centralized
systems. Gradually there will be a switch from natural gas and biogas fired sources to the use of
cogeneration based on piston thermal engines and mini- and micro-gas turbines. 21
(EXPECTING FINAL REPORT OF HEAT DEPARTMENT BY Dec 21st 2007).
The Laws do not require municipal energy planning.
1.6.9. Republic of Montenegro
EDS, the Energy Efficiency Action Plan up to 2012 and EE Action plan for Public Sector (2008-2012)
include activity "Promotion of Energy Management Schemes at local level and capacity building", as
follow:
• Design of Energy Management Schemes at local level and in public facilities (role and
qualifications of energy managers, EE plans, Energy Management functions, etc.),
• Preparation and publication of a detailed Guide on Energy Management in the broader public
sector,
21
Source: Energy Strategy 2020.
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•
Preparation of brochures for EE measures in buildings, water supply utilities, public lighting and
well as for incorporation of RES (solar, biomass etc.) into the buildings energy systems,
• Establishment of pilot Energy Management schemes in large public/local authorities buildings
and facilities throughout the country,
• Decentralised training courses for Energy Managers (in different cities),
• On the basis of the experience from the above activities, drafting of regulation for the
establishment of energy management programmes and schemes at local level for facilities
operated by public and local authorities; outsourced energy management and collective energy
management for groups of small buildings could be foreseen,
• TA to Energy Managers to prepare pilot EE Action Plans,
• EE Demonstration Projects and pilot implementation of EE Action Plans,
• Information dissemination about results and publicity,
Networking of energy managers.
1.6.10.
Romania
Law No. 199/2000 on the efficient use of energy modified and completed by Law 56/2006 requires:
•
the municipalities with a population exceeding 20 thousand residents to develop energy
efficiency programs that would stipulate no cost or low cost energy efficiency measures and
long-term, i.e. 3 to 6 years energy-efficiency programs that would presume investment
programs based on some feasibility studies.
•
the administrators of public property buildings (art 15) to:
i. use efficiently the heating and conditioning systems;
ii. use energy-efficient building materials;
iii. use rationally the interior illumination;
iv. use energy consumption measurement and control devices;
v. make an energy audit for all buildings with an area larger than 1500 m2 every 5 years (the
audit shall be conducted by a licensed legal entity or individual).
Emergency Gov. Ordinance no. 48/2004 regarding measures for supplying thermal energy in
district heating systems.
Decision of the President of ANRSC approves the methodology to establish local prices and tariffs
for thermal energy in district heating systems, including cogeneration.
Law No. 325/2006 regarding public service for thermal energy supply
Government Decision No. 219/2007 regarding promotion of high energy efficiency cogeneration,
which transpose the European Directive.
1.6.11.
Republic of Serbia
Energy Law (No. 84/2004, “Official Gazette of the Republic of Republic of Serbia”) stipulates that
the Autonomous Province and local self-government units shall adopt Energy Development Plans
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determining the energy needs within their area, as well as the terms and conditions for providing
the necessary energy capacities in accordance with the Strategy and Programmed (Article 7).
Also, at the request of the MoME, energy entities, the Energy Agency, the competent ministries,
authorities of the Autonomous Province and administrations of the local self-government units
are obliged to submit data for development of the Energy Balance within 30 days as of the date of
request (Article 9).
SEEA, with the EAR financial support organized in 2005 the training course on energy management
in municipalities where the representatives of 46 Republic of Serbian municipalities participated.
At the end of 2007 MoME organized a similar type of training course for the representatives of
municipalities and prepared “The Manual for the preparation of energy balance in the
municipalities”. It is planed to introduce mandatory energy managers in municipalities by the
amendments on existing Energy Law or by the Law on Rational Use of Energy. There are several
municipalities that have established energy managers.
1.6.12.
Turkey
Not Available
1.6.13.
Ukraine
Law of Ukraine on the National Program of Reforms in Housing and Communal Services Sector for
2004-2010 provided for “development of methodological recommendations for elaboration of
municipal heating plans”. On April 26, 2007 the Ordinance of the Ministry of Housing and
Communal Services #147 approved the Methodological recommendations for development of
energy- and environmentally efficient municipal heating plans (schemes),
Ukrainian Network Energy Savings Cities (UNESC) count 43 city-members which is a
partnership on municipal energy efficiency issues and promotes best practices and know how in
improvement of efficiency of municipal energy sector, as well as strategic planning and
management of municipal energy sector and energy services.
1.7. Legal authority for municipalities to borrow and to use
municipal assets as collateral
1.7.1. Republic of Albania
1.7.2. Bosnia & Herzegovina
In the RS, municipalities may borrow. According to Article 12 of the Law on Local Government, the
municipal assembly shall “decide on loans to be taken by the municipality” and “float public
loans and voluntary contributions” (Art.47 for a city assembly). The municipality “may take
credits needed to fulfill those obligations that cannot be fulfilled from anticipated revenues…)” in
the law, but not to provide “resources needed for the funding of municipal bodies” (meaning
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current expenditures for the functioning of these bodies) (Art.36; Art.69 for cities). According to
the law on the budget of the Respublica Serpska (Official Gazette of RS, 4/00, Art.38 and 39),
cities and municipalities may borrow only for investments. For that purpose, they may borrow
locally and abroad, subject to special criteria, that have to be defined in a Law on the
Implementation of the Budget of the RS: it has not proved possible to identify whether this law
has been passed or not. The amount of the debt of the city or municipality is limited by the ability
to meet the payment obligations from own–source revenues, while the total of the debt cannot
exceed 20% of the total budgetary revenue.
In the FBiH, Cantons and Municipalities are, according to the Organic Budget Law, free to borrow.
But conditions differ from Canton to Canton according to the respective legislation on local selfgovernment. For example, in some Cantons, the borrowing requests of Municipalities are
submitted to the Parliament of the Canton for approval, whereas in others the decision belongs
only to the Municipal Assembly (cantons of Zenica-Doboj and Sarajevo for example). However,
recent Federation budget execution laws have banned any type of commercial borrowing, due to
the seriousness of the current financial situation. The Organic Budget Law limits indebtedness to
20% of total budgetary revenues (Art.37-39).
1.7.3. Republic of Bulgaria
The Law on Municipal Borrowings as of 2005 defines municipal borrowings as a generic term,
which includes all financial liabilities assumed on behalf of and for the account of a municipality
(and, logically, excludes liabilities of companies in which a municipality has holdings, and
current liabilities of municipalities towards providers of commodities and services). Municipal
borrowings comprise (a) debt under bonds1; (b) debt deriving from municipal loan contracts; (c)
debt of municipal enterprises (municipal subdivisions with no separate legal existence); (d)
exposures under municipal guarantees; (e) debt under financial lease for a term of more than two
years, among (f) others. The focus hereinafter is put on municipal bonds, loan borrowing, and
municipal guarantees.
The Law regulates two types of maturities of the municipal borrowings: long-term and short-term
(maturity of more than or up to one year respectively; as a matter of principle, short-term debts
must be redeemed before the end of the budget year in which they have been assumed). The two
types of debt differ in their purpose. Long-term debts may be assumed for: (a) the financing of
investment projects in favor of the local community; (b) refinancing of existing debt; (c)
prevention and liquidation of consequences of force majeure (such as natural disasters and other
calamities); and (d) provision of payments on executable municipal guarantees. Municipalities
may assume short-term debt for the financing of: (a) the provision of public services in case of
temporary shortage of funds; (b) capital expenses, the funds for which are to be sourced during
the budget year from budget revenues, subsidies or contract for long-term debt; (c) urgent
expenses for prevention and liquidation of consequences of force majeure; and (d) the payments
on executable municipal guarantees.
Municipal borrowings may be collateralized in virtually all ways allowed under Republic of
Bulgarian law (including registered pledges and floating charges); public municipal property,
though, cannot serve as collateral.
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The provisions are included in the Municipal Budgets Act 1998 and in the Municipal Debt Act
2005
1.7.4. Republic of Croatia
Not available.
1.7.5. Republic of Georgia
Not available.
1.7.6. UNMIK
Not available.
1.7.7. Former Yugoslav Republic of Macedonia
Former Yugoslav Republic of Macedonian municipalities are still largely dependent on subsidies
from the central government. Furthermore, the methodology for subsidy allocation is amended
every year (very often depending to political prominence of the self governmental unit). This
makes revenue planning difficult and reduces the creditworthiness of municipal authorities.
The uncertainty of municipal revenue, with large dependence on state subsidies and shared taxes,
decreases the creditworthiness of municipalities and affects negatively the ability of local
authorities to borrow and to work with ESCOs. Municipalities are still not able to borrow money
for EEIP till 2007; even they have property which can be mortgaged. Commercial banks had no
hither to finance any municipal projects and are still hesitant to do so since municipalities have
limited sources of revenue and are considered as risky clients. Energy efficiency is often listed
among the primary goals of energy programs and strategies. However, in practice rather limited
resources are allocated to the improvement of municipal energy efficiency.
ADEME/ Energie-Cites Bise – Energy Efficiency Networking Activities 2005, p.31-32
http://www.bise-europe.org/IMG/pdf/BISE_Former Yugoslav Republic of Macedonia.pdf
1.7.8. Moldova
The Law on Local Public Finances № 397-XV as of October 16, 2003
•
Art. 13 (1) The public authorities of the administrative-territorial units of the 2nd level and
Balti municipality based on the corresponding decisions of the representative and authorized
bodies can take loans with a repayment period in the same budget year (except for the loans
received in conformity with Art 14 of the present law) from the state budget, financial
institutions and other creditors. (2) Local government of the 1st level can take loans with a
repayment period in the same budget year from the 2nd level administrative-territorial units’
budget and the Balti municipality budget. (4) The overall amount of loans due on the same
budget year shall not exceed 5% of the total amount of the administrative-territorial unit
own-source budget revenues upon the condition of providing revenues for this loan and its
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other loans.
•
Art.14 (1) A Chairman of rayon, a Head of the autonomous territorial unit with a special
legal status, a Mayor of Balti municipality and a General Mayor of Chisinau municipality
based on the corresponding decisions of the representative and authorized bodies have a
right to conclude agreements on long-term loans for capital expenditures with both domestic
and foreign financial institutions in conformity with the law. (2) A Chairman of rayon, a
Head of the autonomous territorial unit with a special legal status, a Mayor of Balti
municipality and a General Mayor of Chisinau municipality based on part (1) of the present
article and in conformity with provisions from the Law on Securities Market can take a
decisions on concluding agreements on short-term or long-term loans in national currency
through issuing bonds
1.7.9. Republic of Montenegro
Municipalities have the legal authority to borrow, but their capacity to borrow is limited to 10% of the
realised revenue of a municipality (based on Article 64 of the Law on Financing of Local Government).
1.7.10.
Romania
See the Energy System Development Fund.
1.7.11.
Republic of Serbia
Law on Public Debt (No. 61/05, “Official Gazette of the Republic of Republic of Serbia“)
Provisions of Articles 33 to 38 regulate the debts and guarantees of the municipalities as follows:
•
Municipalities are entitled to incur inland and foreign debts in order to finance deficit in
current liquidity and capital investment expenditures in compliance with the criteria set by
the law, but are not allowed to issue guarantees. The amount of debt shall be in compliance
with the municipal capabilities to finance repayment of the debt, both principal and interest,
from its own budget revenues. Borrowing for budget deficit incurred from discrepancy
between budget revenues and expenditures is limited to a maximum of 5 percent of the total
municipal budget revenues in the previous year and must be repaid before the end of the
fiscal year. Long-term borrowing for capital investment expenditures, which must be
included in the municipal budget, shall not exceed the maximum of 50 percent of the
municipal budget revenues in the previous fiscal year, and the annual repayment of principal
and interest must not exceed 15 percent of municipal budget revenue in the previous year.
The Republic of Republic of Serbia may issue guarantees for repayment of the loans
arranged by municipalities, which must be in the form of a law and subject to adoption by
the Parliament. The limit for the total amount of guarantees of the Republic of Republic of
Serbia is established by the Budget Law for each fiscal year.
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1.7.12.
Turkey
Municipality Law No. 5393, Art.68, - Municipalities may contract loans and issue bonds in
accordance with the following procedures and principles in order to meet the expenditure required
by their functions and services:
•
Foreign loans may be contracted under the terms of Law No.4749 on Public Financing and
Debt Management, solely in order to finance projects included in the municipality’s
investment programmed.
•
A municipality wishing to make use of an investment loan or cash loan from the Provincial
Bank shall be obliged to submit its repayment plan to this bank. If the Provincial Bank
considers the repayment plan inadequate, it shall reject the municipality’s requests for a
loan.
•
Bonds shall be issued in accordance with the relevant statutory provisions in order to
finance projects included in the investment programmed.
•
The domestic and foreign debt stock, including interest, of municipalities and their
subordinate bodies and private-law enterprises in which they hold more than 50% of the
capital may not exceed the total amount of their latest final budget revenues increased by the
revaluation rate provided for in Law No.213 on Tax Procedure. The ceiling applicable to
metropolitan municipalities shall be one-and-a-half times that amount.
•
Municipalities and their subordinate bodies and private-law enterprises in which they hold
more than 50% of the capital may contract domestic loans by decision of the municipal
council provided that these do not exceed a total of 10%, for the year concerned, of the
amount of their latest final budget revenues increased by the revaluation rate provided for in
Law No.213 on Tax Procedure; they may contract domestic loans exceeding 10% of that
amount by decision of an absolute majority of the full membership of the municipal council
and with the approval of the Ministry of the Interior.
•
Loans contracted by municipalities for projects accepted by the Cabinet on a proposal by the
State Planning Organization Under-Secretary’s Office in respect of municipal infrastructure
investments requiring high technology and substantial financial resources shall not be taken
into account in the calculation of the amount provided for in sub-paragraph d. The Treasury
Under-Secretary’s Office shall be consulted in respect of projects requiring foreign financial
resources.
•
Municipal officials who contract loans in a manner contrary to the above-mentioned
procedures and principles shall be subject to the provisions on abuse of duty of the Law No.
5237 on Turkish Criminal Code, unless their acts entail a heavier penalty.
1.7.13.
Ukraine
The new Municipal Budget Code calls for budgetary formulas to be based on practical factors, such
as a school’s budget being determined by the number of students. If that school reduced its energy
expenses, it would keep those savings because the budget formulas – assuming the number of
students stays the same – would not change. In addition, the new code allows cities to use their
own budget revenues as collateral and makes borrowing from commercial banks easier. Cities can
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now accumulate energy savings into a separate fund, which can be used to finance additional
efficiency investments. The key barrier now is the fact that few city finance officials understand
the new rights and responsibilities given to them under the budget code.
Energy Sector Investment Strategy for Eastern Europe and the Former Soviet Union”, 2002,
MUNEE Library
1.8. Legal authority for private sector participation in municipal
utilities
•
Privatization
•
Leasing
•
Concessions
•
JVs
•
Performance Contracts
1.8.1. Republic of Albania
1.1.11.1. A law was passed to allow small-scale Independent Power Producers (IPPs) with less
than 5 MW cogeneration and hydropower facilities to enter the energy market. See above
section A2-1 nr. 4.
1.8.2. Bosnia & Herzegovina
BiH at this point in time disposes of neither an adequate legislative nor institutional framework,
including courts, nor of sufficient qualified staff to carry through privatization or to monitor the
emerging private sector.”
Balkans Public Administration Reform Assessment by SIGMA, June 2004
Law on Concessions of the Republic of Srpska: This Law sets the conditions under which local
and foreign legal persons may be granted Concessions for providing infrastructure and services,
as well as exploitation of natural resources, financing, design, construction, rehabilitation,
maintenance and/or operation of such infrastructure and all accompanying facilities in sectors
within the constitutional competence of the Republic of Srpska.
The purpose of this Law is to create a transparent, accessible to all, non-discriminatory and clear
legal framework for setting the conditions under which local and foreign legal persons may be
granted Concessions in the Republic of Srpska and to encourage the investment of foreign capital
in sectors mentioned in Article 1, paragraph 2 of this Law.
In case the subject to Concession occupies the territory of the Republic of Srpska and of the
Federation of Bosnia and Herzegovina, the authority lies with Joint Concession Commission
established by the Law on Concessions of Bosnia and Herzegovina.
In executing its function, the Commission shall promote the satisfaction of public needs and the
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economic development through involvement of private sector in financing, design, construction,
rehabilitation, maintenance and/or operation of infrastructure and accompanying facilities,
services and in exploitation of natural resources and buildings used for their exploitation, taking
into account the protection of economic and social interests, environmental protection as well as
the fair treatment of private sector.
Article 6: The decision to grant a Concession is made by the Government of the Republic of
Srpska. Based thereon the Government or line Ministry and/or local authority and/or public
enterprise, authorized by the Government, managing the subject to Concession shall conclude the
Concession Contract.
1.8.3. Republic of Bulgaria
No forms restricted by law
1.8.4. Republic of Croatia
The Communal Law defines heat supply as a municipal service, meaning generation and supply of
steam and hot water to physical and legal persons, and thus supplying this type of municipal
service to the users of the service. As a municipal service, heat supply also involves the
construction, financing and maintenance of the plants and facilities of the municipal infrastructure
as an integral system in the area of a local self-government unit.
Act on the Production, Distribution and Supply of Thermal Energy:
•
Article 12
Thermal energy distribution shall be performed by virtue of a concession granted or a
service contract concluded. An energy service company shall distribute thermal energy by
using its own or leased energy distribution installations. The nature and quality of energy
distribution services shall not depend on the type of arrangements involved in using the
energy distribution installations
•
Article 13
1) A thermal energy distribution concession shall be granted by the representative body or
another authorized body of the local self-government unit after a conducted public tendering
procedure. Two or more representative bodies or other authorized bodies of local selfgovernment units may jointly conduct a tendering procedure and grant a thermal energy
distribution concession for their entire territories or parts thereof.
•
Article 14
The thermal energy distribution concession shall specify the energy service company which
will act as a concessionaire, the technical and geographic coverage, the scope of performing
services, the period of concession and other matters prescribed by this Act.
•
Article 15
The thermal energy distribution concession shall be granted for a period of up to 30 years.
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1.8.5. Republic of Georgia
“Tbilisi Corpus” created in 2004. All residential associations are included in “Tbilisi Corpus”
1.8.6. UNMIK
The UNMIK Trust Agency (KTA), under the mandate of the UNMIK, is the institution in charge
with management of public assets.
There is no law on concessions, but there exist a Law on Procedures of Concessions.
1.8.7. Former Yugoslav Republic of Macedonia
Municipalities theoretically can acquire revenue from managing municipal property: it can be lent,
sold, exchanged, given for concession, used as a bank guarantee, etc. ADEME/ Energie-Cites Bise
– Energy Efficiency Networking Activities 2005
http://www.bise-europe.org/IMG/pdf/BISE_Former Yugoslav Republic of Macedonia.pdf
1.8.8. Moldova
1.8.9. Republic of Montenegro
Municipal utilities do have legal authority to allow private sector participation, and there are examples of
privatisation of waste collection/ disposal utilities in several municipalities. However in the energy sector
there is no district heating present in Montenegro, no gas, and electricity is distributed through a national
utility (EPCG). Thus at present the legal authority for private sector participation in municipal utilities
remains theoretical at present as concerns the energy sector.
1.8.10.
Romania
The Romanian legislation allows major privatization as well as minor – such as concession contracts and
joint ventures. Major examples of heat sector concession contracts exist in the DH companies of
Romania.
1.8.11.
Republic of Serbia
There are several regulations in the legal system of the Republic of Republic of Serbia which regulate
specific relations, conditions and rights and obligations, tied directly to improving the position
and work of public utility companies (PUC). Strictly speaking, these directions may be observed
through four groups of aspects and relations. The first pertains to entrusting tasks, as a category
stipulated not just in this analysis by the mentioned systemic and other laws, but in the
Constitution itself. The other direction is privatization, as a general path in transformation, but
without any detailed determinants, with respect to public utility activities. Namely, for quite some
time the idea is present to define a comprehensive strategy which, after having been accepted in
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the professional public, and the competent state authorities, would become the basis for legal
regulation of the status, right and obligations, and finally, the transformation of public utility
companies (which the public activities in general can be the object of privatization, which part
and in what percentage of capital of public utility company remains a public-legal, and which
private, the organization and manner of decision making and the position of the public utility
company towards the public bodies in the process of making strategic decisions etc.). The third
direction is a system of concessions, which remind in many ways of entrusting the task (above all,
because the entrusting of tasks and concessions is made for a specific period of time, whereas the
public utility activity or task in the sphere of such activity may be entrusted for a period of up to
25 years under certain conditions, and the concession up to 30 years). On the other hand, the
concession resembles a short-term joint venture arrangement. The reason for this is the fixed
term (in other words, there is the participation of private domestic or foreign capital, private
domestic or foreign organizational form and finally, procedure in decision making, in accordance
with the domestic regulations, realized by the domestic or foreign legal or natural person).
According to the Law on Concessions (No. 55/2003, “Official Gazette of the Republic of
Republic of Serbia”) the development, maintenance and operation of public utility facilities for
the purpose of performance of public utility activity, among other things, is the object of
concession (taking into consideration such defined concessions in case of performance of public
utility activities, concessions in public utility activities are always performed on the basis of
B.O.T. system - build, operate and logically, transfer to the owner - Republic of Republic of
Serbia). The concessionary pays the concession charge. The fourth, presently legally possible
direction is a joint venture arrangement, as a type of PPP (public private partnership) relation.
Such option, except being recognized in general by the regulations on privatization, foresees the
regulations regulating the position of the company, as well as foreign investment (the Law on
commercial companies and Law on foreign investments). So, there are four main instruments
existing in this moment in domestic legislation. While first and third are examples of temporary
improvement just of work of PUCs, second (privatization) and fourth (joint-venture arrangements
that could be seen as joint-stock or limited liability companies) are examples of permanently
improved both of work and status of PUCs within appropriate corporate/structural changes.
1.8.12.
Turkey
Not Available
1.8.13.
Ukraine
Law on Concession: Concession is the procedure of granting the rights to a juridical or physical
person (a subject of entrepreneurship) by the authorized public authority based on the Concession
Agreement and on the basis of payment and emergency to meet public needs. The following
spheres of economic activity may be granted to concession: water supply, sewage overflow and
clarification; gathering and utilization of garbage; rendering of services related to heating supply
to the consumers; other.
Law on financial Leasing, Art.3, p3. A property being in the state or communal ownership and not
encumbered by the limited right of conveyance into use and possession can be transferred into
leasing according to the procedure established by the Law.
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1.9. Legal authority for ESCOs to implement projects using
energy performance contracting
1.9.1. Republic of Albania
1.9.2. Bosnia & Herzegovina
“According to experts, the compound authority and political situation results in a lack of overarching
energy strategy or policy (Chabchoub 2005). Regrettably, according to the MUNEE Network,
energy decisions and directions in Bosnia and Herzegovina can be characterized to some extent
by “unclear authority over energy issues”, the need for a “long-term energy strategy on the state
level”, and the improvement of energy statistics (USAID n.d.a.). Consequently, ESCO activity is
limited, although not absolutely unknown. There are no ESCOs offering EPC in BiH (Prašović
and Knežević 2005, Chabchoub 2005), though there is at least one company using the ESCO
concept in implementing a small scale boiler biomass heating project, and a number of other
ESCO projects have taken place.” Latest Development of Energy Service Companies across
Europe - A European ESCO Update -Authors: Paolo Bertoldi, Benigna Boza-Kiss, Silvia
RezessyInstitute for Environment and Sustainability, p72
1.9.3. Republic of Bulgaria
Energy Efficiency Act Article 13. The energy efficiency activity shall be carried out through energy
efficiency services.
“At the moment, Republic of Bulgaria is lacking Energy Service Companies which show fully
compliance with Service international state of the art (no standards are still available): either on
know-how, either on technical resources, or on financial capacity to fund adequate projects.
Public Authorities, in their role of Energy Services customer, are not yet ready to give, within
their budget instruments, fully guarantee to pay for ESCO investments. Ministry of Economy and
Energy is consequently preparing further amendments in order to better define the framework in
which a full cooperation between ESCO and Public Authorities may full develop”
Phare twinning project BG/2004/IB/EY/01Institutional Building at the Energy”
http://www.seea.government.bg/documents/twinning/legislation/twinning_bg04ib01ey_taskreport1_1.pd
f
1.9.4. Republic of Croatia
The legislative framework is not particularly supportive of the ESCO concept. Secondary legislation
on energy efficiency has not been developed, and the ESCO model is not recognized by the
authorities as an individual business model. The result of this situation is that ESCOs cannot
invoice their services as a package, and VAT must be paid for the equipment installed for the
client, which may jeopardize the profits. Connecting CHP plants to the grid is also difficult.
Similarly to many other countries, public procurement is complicated.
Pursuant to the Government Conclusion of April 2006 the competent bodies, Ministry of the
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Economy, Labor and Entrepreneurship and Ministry of Finance, were entrusted with the task to
prepare proposals of the legislation, which would regulate the energy efficiency investments
according to the ESCO model for the users of the budget
KUEN - Centralized Thermal Systems’ Energy Efficiency Program
1.9.5. Republic of Georgia
Not Available.
1.9.6. UNMIK
The draft Administrative Instruction on End-Use Energy Efficiency and Energy Services includes in
Article 7 the market opening for energy service companies (ESCOs), providing conditions of
equal competition to ESCOs, installers, energy advisors and consultants, to independently offer
and implement energy services, energy audits and energy efficiency improvement measures.
1.9.7. Former Yugoslav Republic of Macedonia
There are a number of important traditional barriers to energy efficiency investments and to the
development of the ESCO sector in Former Yugoslav Republic of Macedonia, but the World
Bank has identified financial restraints as the most urgent and effective to deal with in the case of
Former Yugoslav Republic of Macedonia. In order to overcome this obstacle, the World Bank has
a currently operational project in the country through the GEF, which supports the start of the
ESCO market on the basis of 3 pillars. First of all, support is given to establish the market
framework through technical assistance to develop and implement secondary legislation set out in
the Energy Efficiency Strategy. Secondly, the World Bank (similarly to the system in Republic of
Croatia) establishes a public utility-based ESCO under the umbrella of the Former Yugoslav
Republic of Macedonian Market and Transmission System Operator (MEPSO), ELEM79 and
TOPLIFIKACIJA AD. (PEEREA 2006a, GEF 2004). The ESCO will provide turnkey and
performance-based contracting for energy efficiency, and will demonstrate the financial
performance of such projects using third-party financing for publicly-owned buildings. The
launch of the ESCO is expected by March 2007. Thirdly, the creation of the Sustainable Energy
Financing Facility is designed to provide a loan guarantee facility and a debt fund, on a cofinancing basis with commercial institutions and the Former Yugoslav Republic of Macedonian
Bank for Development Promotion (MBDP) (PEEREA 2006a). Former Yugoslav Republic of
Macedonia is in the introductory phase of the energy service company market, and given the local
potential, interest and international help, the next two years should see the results of recent
efforts.
Latest Development of Energy Service Companies across Europe A European ESCO Update P74-75
1.9.8. Moldova
Moldova does not have specific legislation allowing energy performance contracting.
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1.9.9. Republic of Montenegro
ESCO services and alternative financing instruments are not developed in Montenegro. EDS, the Energy
Efficiency Action Plan up to 2012 and EE Action plan for Public Sector (2008-2012) recommend as a
very important means for the market the development of ESCOs and alternative financing instruments
opening of the public sector to these services. Regulatory establishment of EE criteria in public
procurements combined with measures to promote alternative financing mechanisms in the public sector,
could create the initial market for these services.
Enabling use of alternative financing instruments in the public sector requites a combination of activities
including:
• Screening of all relevant legislation and regulations to remove barriers and complete it so that
decision making, contract signing, etc. is facilitated.
• Development of standard contract models, energy performance verification methodologies as
well as guides to implementation.
• Information dissemination, training and advice to public servants dealing with these contracts.
Additional incentives may be provided to service providers and to banks to develop and offer alternative
financing instruments. International financing programmes may be also used to promote development of
the relevant market.
1.9.10.
Romania
Not yet. ARCE and the Berlin Energy Agency are working to introduce the legal framework for
Energy Performance Contracts that will serve as a basis for ESCO activity.
1.9.11.
Republic of Serbia
From the legal point of view there are no impediments on the ESCOs operation in the Republic of Serbia,
however due to the public procurement procedures it is rather complicated to implement energy
efficiency projects based on ESCO model in municipalities. Implementation of the energy efficiency
projects based on ESCO model in the private sector seems to have been implemented by several
ESCOs in Republic of Serbia. The main obstacle for the wider engagement of the ESCOs in Serbia is
still low electricity price as well as lack of financial support/guarantees for ESCOs operation. Energy
Sector Development Strategy of the Republic of Serbia by 2015 Implementation Program for the
period 2007-2012 foresees detailed analysis of the existing situation and further improvement of
the regulatory and other conditions for the ESCOs operation.
1.9.12.
Turkey
ESCOs have not yet appeared in Turkey as of 2007, although it is expected that in the near future
some companies will be able to tap the large saving potential, especially in RES installations and
heat and cooling services. Turkey has passed an Energy Efficiency Law in February 2007 which
stipulates the role of ESCOs, together with a number of supportive provisions, such as obligatory
audits, building codes, obligation to employ energy managers, etc. (Caglar 2006, Saffet Bora
2007).
EE Law: Art.5, d4e)
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•
e) The companies shall have the following functions:
i. Carry out training, certification, audit and consulting activities under service contracts
made with industrial establishments, building owners or management.
ii. Prepare projects for implementing the measures identified by energy efficiency audits.
iii. Implement changes according to the projects under implementation agreements and
guarantee energy savings quantity.
•
f) Company means energy efficiency consulting companies to be issued an authorization
certificate to provide energy efficiency services under the authorization agreement concluded
with the General Directorate or authorized institutions,
ARTICLE 7, a) The following activities shall be carried out for energy management:
i. Industrial establishments shall nominate one of their employees as the energy manager.
An energy management unit shall be established in the organized industrial districts to
serve industrial establishments in the district each with less than one thousand TOEs of
energy consumption.
ii. The management, or in its absence the owners, of commercial buildings, service buildings
or public sector buildings with at least twenty thousand square meters of construction area
or with annual energy consumption at five hundred TOEs or more shall appoint an energy
manager or procure service from energy managers.
1.9.13.
Ukraine
Ukrainian legislation does not clearly allow energy performance contracting, which creates
difficulties for ESCO operation in the country.
1.10. Sanctions for wasteful energy practices
•
Sanctions for non-compliances with EE standards and state requirements
•
The authorized agency/organization enforcing the sanctions
1.10.1.
Republic of Albania
Any fuel and electricity supplier who has failed to report, or has submitted false report, on energy
supplied to its customers to the National Agency of Energy (now the AKBN) every 6 months and
no later than March 31 and September 30 of each year shall be fined anywhere from 100,000 to
300,000 leis by the Local Energy Office, competent by virtue of the location of the supplier. See
section A2-1 nr. 5 above.
1.10.2.
Bosnia & Herzegovina
No information.
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1.10.3.
Republic of Bulgaria
A person being checked, who will not be obliged to provide appropriate conditions for the check-up
and render assistance to the Control body shall be liable to fine from 200 to 500 levs or a property
sanction from 500 to 1,000 levs.
An officer, who breaks the provisions on keeping confidential the official and commercial
circumstances they have come to know about in the course of performing their duties, shall be
liable to fine 500 levs.
The person, who fails to fulfill the binding prescriptions to the inspected persons for removal of the
established offences and setting a period for bringing in compliance with the energy efficiency
indices established by the by-laws under Energy Efficiency Act and drawing up the acts to
ascertain administrative offences, shall be liable to fine from 500 to 1000 levs or a property
sanction from 1,000 to 3,000 levs.
In cases when a legal person or a sole entrepreneur refuses to the control body, performing the checkup under Energy Efficiency Act, control study, shall be liable to a property sanction from 200 to
2,000 levs.
A person, performing the study establishing violation of indices determined by by-laws under Energy
Efficiency Act, who has not notified the Agency and submitted the required documents
ascertaining the results of study, shall be liable to fine from 100 to 500 levs or a property sanction
from 500 to 1,000 levs.
A person implementing building certification or energy efficiency study, who admits violation in
fulfillment of his obligations, shall be liable to fine from 200 to 1,000 levs or with property
sanction from 500 to 5,000 levs.
A person implementing building certification or energy efficiency study, in violation of the provision
of article 16, p. 4, i. 5 or article 18, p. 1, i. 5 of Energy Efficiency Act, shall be liable to fine from
200 to 1,000 levs or with property sanction from 500 to 5,000 levs.
1.10.4.
Republic of Croatia
1.10.5.
Republic of Georgia
Nothing, but if households will spend up then 301 kWh electricity they will pay 0,1769 GEL.
1.10.6.
UNMIK
Not Available
1.10.7.
Former Yugoslav Republic of Macedonia
Not Available
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1.10.8.
Moldova
For the wasteful consumption and direct losses of energy resources, the Empowered Authority shall
apply sanctions in accordance with legislation to enterprises, institutions and organizations
1.10.9.
Republic of Montenegro
No such sanctions are in place.
1.10.10.
Romania
The energy consumers, legal entities are required to: a) comply with the technical regulations
regarding the design, construction, exploitation, maintenance, repair of own installations and energy
receivers, as well as to equip those with measurement and control devices; b) to have their own
record and monitoring system for energy consumption and to make the information on energy
consumption and energy-efficiency indicators available to the empowered authorities.
The individual consumers, physical entities, are required to install individual measurement and
control devices.
The consumers using over 200 tons of oil equivalent annually must have an energy audit every 2
years. Consumers using over 1000 tons annually must appoint an energy manager; have an energy
audit performed by a licensed auditor; draft energy efficiency programs to reduce the energy
consumption, including investments for which feasibility studies shall be made.
Economic agents performing in production, transport, and distribution of fuels and energy are
required to: reduce their own energy consumption; promote solar, wind, geothermal energy, biomass,
biogas and energy produced from household wastes; conduct information activities, consulting,
geothermal energy development, as well as undertake efforts to improve energy efficiency, as agreed
with the consumers, producers, and suppliers of electricity and heat.
Transportation companies, likewise other companies with more than 10 cars are required to develop
programs for monitoring and administration of energy consumption.
•
The administrators of public property buildings (art 15) are required to:
a. use efficiently the heating and conditioning systems;
b. use the energy efficient building materials;
c. use rationally the interior illumination;
d. use energy consumption measurement and control devices;
e. make an energy audit for the buildings with areas larger than 1500 sq.m. each 5 years
(the audit shall be conducted by a licensed legal entity or individual)
•
The failure to respect the requirements, depending on the case, shall result into the following
contraventions: 1000 000 to 5000 000 lei, 3000 000 to 10 000 000 lei and 8000 000 to 15 000 000
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lei and confiscation of corresponding assets. All these penalties are collected to the state budget.
1.10.11.
Republic of Serbia
Not available
1.10.12.
Turkey
EE Law, ARTICLE 10 – (1) Administrative sanctions within the framework of the following
principles shall be applied to natural or legal persons as a result of fact finding and/or inspections
conducted by the bodies authorized to impose administrative fines under this Law.
The following cases require administrative sanctions:
•
Where the provisions of the regulation to be issued relating to authorizations under Article 5 are
violated, the authorization certificates of institutions authorized according to principles and
procedures laid down in the authorization agreement shall be revoked by the General Directorate
upon the Board's approval, and the authorization certificates of the companies shall be revoked by
the institution with which they have concluded agreements. Those institutions or companies with
authorization certificates revoked shall not be re-issued certificates for at least five years.
Agreements concluded with the companies by the authorized institutions with authorization
certificates revoked shall be examined by the General Directorate, and those agreements not
meeting the requirements of the regulation shall be cancelled. Those agreements that meet the
requirements of the regulation shall be renewed by the General Directorate.
•
Where the information required under Articles 5, 7, 8, and 9 is not provided or access for
examination is denied, thirty days shall be allowed to provide the required information and/or
access. An administrative fine of ten thousand Turkish Liras shall be imposed if the information
provided by the end of the time allowed is inaccurate or incomplete, or fifty thousand Turkish
Liras if the information is not provided at all and/or the access for on-site inspection is denied.
•
An administrative fine of five hundred Turkish Liras shall be imposed where the other
information required under this Law and relevant regulations except for the item (2) of this
subparagraph is not provided accurately and as required.
•
Those who use to their self interests the trade secrets indicated in subparagraph (c) of the first
paragraph of Article 5 shall be barred from serving in the organizations covered under this Law
for a period not to be less than two years.
•
Provisions of the item (1) of this subparagraph shall apply to those companies which are reported
to the General Directorate for having violated the provisions of this Law and issued regulations
under the item (2) of the subparagraph (e) of the first paragraph of Article 5.
•
Provisions of the Law no.3984 shall apply to those who fail to observe the broadcast obligations
specified in the item (1) of the subparagraph (c) of the first paragraph of Article 6.
•
An administrative fine of five thousand Turkish Liras shall be imposed to legal persons where the
provisions relating to the item (2) of the subparagraph (c) of the first paragraph of Article 6.
•
Where the industrial establishments and building owners or management act contrary to the
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subparagraph (a) of the first paragraph of Article 7 and relevant regulation provisions, they shall
be warned to remedy the violation. If the violation is not remedied within thirty days, an
administrative fine of twenty thousand Turkish Liras shall be imposed to such industrial
establishments and building owners or management.
•
The Ministry of Industry and Commerce shall impose an administrative fine of twenty thousand
Turkish Liras to natural and legal persons who make sales contrary to subparagraphs (i) and (j) of
the first paragraph of Article 7.
•
Except for the item (9) of the subparagraph (a) of this paragraph, the administrative fines shall be
doubled if the same offense is repeated within one year from the administrative fine.
•
Where the amount of fines imposed on the industrial establishments, building owners or building
management pursuant to items (2), (3) and (8) of the subparagraph (a) of this paragraph exceed
twenty percent of the total energy expenditures of the previous fiscal year or five percent of the
revenues in the balance sheet for the previous fiscal year of the fined natural or legal person, the
lower of the fines shall be assessed as calculated with respect to both thresholds provided that the
balance sheet and energy consumption documents are shown within thirty days.
•
The General Directorate shall impose the administrative sanctions unless such sanctions are to be
imposed by another public agency or institution under this Law.
•
The liability of legal persons for administrative fines shall be determined according to Article 65
of the Turkish Commercial Code no.6762 dated 29.06.1956.
1.10.13.
Ukraine
Economic sanctions shall be imposed on legal and physical entities for:(a) wasteful use and direct
fuels and energy losses;(b) untimely fulfillment of audits of fuel and energy use efficiency;(c)
non-fulfillment or untimely fulfillment of state management bodies' directives aimed at
improving situation with wasteful and careless fuels and energy use.
Administrative and civil responsibility for violation of the legislation on energy saving shall be
imposed on entities responsible for:
•
non-compliance with requirements to maintain and improve the technical level of energy
consumption equipment and energy supply systems;
•
refusal to timely submit complete information, and also falsification of accounting data and
reports on energy saving;
•
violation of the Ukrainian legislation when conducting energy audits including submitting
deliberately incorrect expert decisions;
•
failure to fulfill the state energy expert examination decisions;
•
financing, production and operating new technologies and equipment not correspondent to the
state energy standards and audits;
•
violation of established energy saving regulations when designing, producing, reconstructing,
operating, exploiting enterprises, premises, means of transportation and other objects;
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•
inefficient fuels and energy use with regular exceeding of standard energy levels and violating
other regulations on efficient use of energy and fuels;
•
violation of terms of payments for inefficient use of fuels and energy;
•
failure to fulfill directives of bodies exercising energy saving control and creating obstacles for
normal work of these bodies
1.11. Energy auditing requirements, supervision, and certification
of auditors
1.11.1.
Republic of Albania
Natural or legal persons who consume energy may be subject to energy audits. The detailed content
of the energy audit shall be stipulated by a regulation approved by the Council of Ministers.
The Minister responsible for energy is authorized to issue licenses for energy auditors.
The energy auditor should pass the expert examination for obtaining the license. The expert
examination shall be taken before an examining board appointed by Minister. The number,
activity and compensation of members of the examining board shall be regulated by a regulation
adopted by the Minister.
A person is considered competent to perform the energy audits if he/she graduated from university in
a technical or natural science field and has 2 years of auditing experience or completed his/her
secondary education in a technical field and has 5 years of auditing experience.
1.11.2.
Bosnia & Herzegovina
Not Available.
1.11.3.
Republic of Bulgaria
Subject to energy efficiency study (energy audits) shall be every energy consumer whose annual
consumption is above the limits, determined in the law under the terms and by order stipulated by
a regulation for energy efficiency study of the Minister of Economy, Minister of Regional
Development and Public Works and Minister of Energy and Energy Resources.
The energy audits are meant for identifying specific possibilities of reducing the energy consumption.
The energy efficiency audits shall ascertain:
•
Energy consumption;
•
Level of technologies and the energy management;
•
Savings of heat energy and the heat preservation of the site;
•
Compliance with energy efficiency standards and requirements prescribed by the law.
The study for energy efficiency shall contain data and recommendations for energy efficiency
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improvement. Where the energy efficiency study/audit establishes violation of indices determined
by by-laws under this act the person carrying out the investigation shall notify the Agency and
shall submit the documentation ascertaining the results of study.
The energy efficiency services connected with auditing, designing, construction, installation,
modernization, maintenance and/or management and monitoring shall be carried out by natural or
judicial persons, registered under the Commercial Act and they shall be carried out on the basis of
written contracts, concluded with an energy consumer.
The law also regulates the licensing of energy auditors and defines a scale of penalties for violation of
these procedural requirements.
National Target Program on Energy Efficiency 2006; the program launches energy auditing and
certification of state and municipal buildings.
1.11.4.
Republic of Croatia
Partly transposed through the Technical regulation concerning energy economy and heat retention in
buildings (OG 79/05 and 155/05)–the first step in the process of implementing Directive
2002/91/EC on the energy performance of buildings –Ministry of the Economy, Labor and
Entrepreneurship and the Environmental Protection and Energy Efficiency Fund finance Energy
audits on the basis of public tenders (37 done; € 250.000)
1.11.5.
Republic of Georgia
Not available.
1.11.6.
UNMIK
Pursuant to Article 10 of the Law on Energy No. 2004/8, and on the draft Administrative Instruction
on End-Use Energy Efficiency and Energy Services, and the draft Administrative Instruction on
Energy Audits includes requirements for energy audits in the public sector and rules for the
supervision, qualification and certification of energy auditors.
1.11.7.
Former Yugoslav Republic of Macedonia
Energy Efficiency Strategy, prepared in 2004 establishes a certification procedure for energy
auditors.
1.11.8.
Moldova
State-authorized audit must be an obligatory for all commercial companies and state enterprises.
The state or economic agencies with annual fuel consumption over 500 tones of conventional fuel per
year have to undergo mandatory audits every 5 years.
If the audit registers an over-consumption of energy resources, the organization has to implement
compulsory energy efficiency programs in a specified period of time.
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1.11.9.
Republic of Montenegro
In bilateral cooperation with Norwegian Government, currently ongoing project "Capacity Building on
Energy Auditing of Buildings" has main objective to increase local capacities and skills on Energy
Auditing of Buildings, and provide methods and tools supporting Montenegro to comply with the EU
Directive on the energy performance of buildings. One of the programme components is support Training
of Energy Auditors in cooperation with University of Montenegro and Ministry for Economic
Development, with following activities:
• Adjust software for energy calculations to fit Montenegrin conditions (climate and local
reference values),
• Train local specialists (university lecturers / consultants) in energy auditing using the software
for energy calculations according to the EU building directive,
• Prepare the grounds to include the subject of energy auditing of buildings into the university
curricula in selected classes,
• development of regulatory framework for energy efficiency in the building sector and assistance
to the MEEU in developing an action plan for development of proper building regulations for
energy efficiency in the Montenegrin building sector.
1.11.10.
Romania
Law on Efficient Use of Energy No. 199/2000 modified and completed by Law 56/2006 requires
the economic agents that have an annual consumption of energy exceeding 1000 tons of
equivalent fuel and the municipalities with a population over 20000 residents to make energy
audits:
The administrators of public property buildings (art 15) are required to:
•
use efficiently the heating and conditioning systems;
•
use the energy efficient building materials;
•
use rationally the interior illumination;
•
use energy consumption measurement and control devices;
•
make an energy audit for the buildings with areas larger than 1500 m2. each 5 years (the audit
shall be conducted by a licensed legal entity or individual
Minister Ordinance no. 245/200
1.11.11.
Republic of Serbia
Regulatory framework for introduction of energy consumption standards in buildings, energy
certification of buildings and energy audits will be created by the Law on rational energy use and
adequate secondary legislation. The Law on rational energy use is expected to be adopted in the
first half of 2009.
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1.11.12.
Turkey
EE Law, Art5 :
•
a.2) The companies shall be issued authorization certificates by the General Directorate
and/or authorized institutions for carrying out training, audit, consulting and implementation
activities. Such certificates shall be renewed every three years unless procedures and
principles as defined in this Law and associated regulations have been or are violated. The
companies shall pay to the institutions or organizations with which they made authorization
agreements the entire amount of the authorization certificate fee, and a portion not to be
more than ten percent of the energy manager certificate fee as determined by the Board.
a. d.2) The authorized institutions shall monitor the activities of the companies to which they have
issued authorization certificates, and report within thirty days to the General Directorate any
matters violating the provisions of the regulation to be issued by the Ministry for the
implementation of this Law.
b. d4e) e) The companies shall have the following functions:
•
Carry out training, certification, audit and consulting activities under service contracts
made with industrial establishments, building owners or management.
•
Prepare projects for implementing the measures identified by energy efficiency audits.
•
Implement changes according to the projects under implementation agreements and
guarantee energy savings quantity.
c. f) Company means energy efficiency consulting companies to be issued an authorization
certificate to provide energy efficiency services under the authorization agreement concluded
with the General Directorate or authorized institutions
1.11.13.
Ukraine
Compulsory state energy saving audits (expert examination) shall be conducted for the purpose of:
•
verifying compliance of management, investment and other activities with energy saving goals;
•
studying compliance of pre-plan, pre-design, design and other decisions as stipulated in the
legislation on energy saving, current energy standards and norms;
•
making expert recommendations and decisions as to energy consumption and energy saving
programs and projects.
A body authorized by the Cabinet of Ministers of Ukraine shall implement state energy saving audits.
Decisions of the state energy saving auditors are compulsory for consideration, and shall serve as the
basis for evaluating consumers’ applications for subsidies, tax and credit-financial privileges to be paid
from the energy saving fund.
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1.12. Social safety mechanisms protecting vulnerable households
from the tariff increases
1.12.1.
Republic of Albania
Tariffs in Republic of Albania are still kept very low. The Republic of Albanian-EU Energy
Efficiency Centre (in cooperation with the Alliance to Save Energy and support from USAID)
prepared an assessment of possible institutions in Republic of Albania that could provide energyefficiency assistance to vulnerable households as a response to potential tariff increases.
1.12.2.
Bosnia & Herzegovina
General type of subsidies for heating.
1.12.3.
Republic of Bulgaria
Electricity: No more lifeline tariffs for general population. Targeted subsidy for qualifying
households.
Heat Fuels: Targeted subsidy for qualifying households (for DH, gas, other heating fuels).
The Winter Supplement Program is available to everyone who is already eligible for social
assistance, although the number of people receiving the supplement is actually larger than the number
of social beneficiaries in general. Despite spending two percent of the total social benefits
expenditures for 2001, the program has not been adequately funded and does not cover all of the
heating costs for all low-income households. In subsequent years, the Republic of Bulgarian
government has become more selective about recipients for this benefit.
Based on the National Energy Strategy (2002) Republic of Bulgaria’s energy reforms integrate a
social safety net for vulnerable households through three approaches: (1) a combination of carefully
structured subsidies (some budget-related and others specific to type of heat energy used) that phase
out gradually, (2) tariffs with a transitional period, and (3) energy efficiency. The Energy Efficiency
Agency implements special programs including: i) providing low-income families with highefficiency light bulbs; ii) low-interest loans to finance weatherization (windows, insulation); iii)
grants to help vulnerable households finance mandatory installation of heat cost allocation devices;
iv) brochures for households about simple energy-saving measures. Republic of Bulgaria’s subsidies
have been gradually phased out and now are targeted at vulnerable households only. In 2005 the
EBRD established the Residential Energy Efficiency Credit Line funneling €50 million through
private local banks to finance insulation, efficient heaters and boilers fueled by biomass or gas,
windows, and solar water heaters. A national housing renovation program approved in 2005 aims to
decrease residential heating bills by 40 percent in some of the most energy-inefficient multifamily
buildings constructed during the 1960s-1980s.
The state budget will co-finance up to 20 percent of each project’s total investment cost.68
Alliance to Save Energy – Study on Residential Energy Efficiency and Affordability, p. 38-50
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1.12.4.
Republic of Croatia
The RS electric utility (EPRS) passes 10% of its revenues to municipalities for households based on
municipal lists.
Law on Energy, art.26 Tariff systems should provide incentives for the promotion of energy
efficiency and management of demand side, including the promotion of the use of renewable energy
resources.
1.12.5.
Republic of Georgia
After tariff in Republic of Georgia increase on electricity and gas, in the end of 2007, Government
supported once to pensioners only once 50 GEL/y voucher for natural gas and 50 GEL/y voucher for
electricity, corresponding amount was directly transfer to Tbilisi electricity and gas distribution
companies. We have no Social safety mechanisms.
1.12.6.
UNMIK
UNMIK government budget is funding about 4.0 million Euro per year for a subsidy scheme to
vulnerable customers.
The subsidy is paid from the Ministry of Labor and Social Welfare directly to the electric utility –
KEK JSC.
1.12.7.
Former Yugoslav Republic of Macedonia
A specific social safety net program oriented especially to the energy needs of the population does not
exist. No low-income heating costs covered by social safety net.
Social assistance for the low-income households is distributed as a general payment (not intended to
cover specifically the expenses for the utility services). According to Social Assistance Law from 2004
there are generally two groups of households receiving social assistance:
•
Group “A”: Assistance payments of USD 55.48/month per household where the members of the
household are not capable to work, in total around 5,200 households;
•
Group “B”: Assistance payments of USD 45.98/month per household where the members of the
households are capable for work but are not economically insecure, in total 65,000 households.
Individual social assistance includes:
•
Individual social assistance and care is provided to people who cannot perform their survival
needs without help from caregivers. USD 16,923,078 is allocated for the total number of 18,950
beneficiaries/recipients.
•
Right to receive health/medical protection
•
Right to receive an allowance for reduced working hours
•
Disabled people
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•
The provider of the family is called on duty for a military training
•
There are no subsides of any kind.
•
“Customers who fail to pay their bills on time will be cut off until payments are made. As noted
in Chapter 2 in the case of FYR Former Yugoslav Republic of Macedonia, sometimes
nonpayment is tolerated as its own form of social subsidy”. Regional Synthesis Paper Addressing
Affordability of Utility Services in Urban Housing: Energy Efficiency Solutions, October 2007,
p.37
1.12.8.
Republic of Moldova
Natural gas and district heat subsidies exist, and electricity tariffs are significantly below long-term
marginal costs. There are cross-subsidies to natural gas, with the industrial and power sectors paying
more than households.
1.12.9.
Republic of Montenegro
In accordance with Directive 2003/54/EC, Government of Montenegro has adopted Subvention
Programme for the most Socially Vulnerable Groups (26 July 2007), with the aim of meeting
minimum electricity and heating needs.
1.12.10.
Romania
The social safety net system for energy has included untargeted subsidies for customers using natural
gas and district heating, and targeted “heat assistance payments” for the same two energy services,
plus wood and coal. Targeted heat assistance is available for households that meet certain criteria
based on income and other criteria, and the municipalities are involved with distributing heat
assistance.
1.12.11.
Republic of Serbia
JP EPS (Electric Power Company) accepted on 22 June 2004 the decision to allow 30% discount to
particularly vulnerable households (under some conditions).
1.12.12.
Turkey
There have been cross-subsidies in electricity and gas prices both between different consumer groups,
notably from industrial consumers to residential consumers, and between different geographical
areas.
ELECTRICITY MARKET LAW No.4628, Article 13 “In cases where consumers in certain
regions and/or in line with certain objectives need to be supported, such subsidy is provided in the
form of direct cash refunds to consumers without affecting the prices. Amount, principles and
procedures of the subsidy are determined by Council of Ministers.”
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The IEA commends the government for its plan to base energy prices on costs. Cost-reflective prices
are a prerequisite for ensuring private investment and efficient use of energy.
Turkish hard coal production is not competitive. It receives high subsidies for social, regional and
employment reasons. The IEA does not consider these subsidies justified. Turkey should reduce
them, set a clear deadline for their elimination and use other means to address social and regional
challenges.
IEA Press Release http://www.iea.org/Textbase/press/pressdetail.asp?PRESS_REL_ID=145
1.12.13.
Ukraine
Subsidies and cross-subsidies at various levels still create distortions on the Ukrainian heat and
energy market.
•
District heating tariffs do not cover costs; the difference is covered by subsidies from local or
state budgets. Residential tariffs are cross-subsidized by higher industrial tariffs.
•
Electricity tariffs for households and natural gas prices for the residential and public sectors are
lower than those for industrial users.
2. Policies and Programs
2.1. Policies, strategies, or action plans establishing energy
savings goals for the country as a whole and by sector
2.1.1. Republic of Albania
Minister responsible for energy, through the National Agency of Energy (now the AKBN), shall
develop and submit a national energy efficiency program to the Council of Ministers every two years
for approval. The program shall be accompanied by a detailed economic evaluation.
With the support of USAID and other international institutions, the Republic of Albanian National
Strategy of Energy (NSE) has been prepared and approved by the Government of Republic of
Albania (see section A1-1 above). During the first year of the NSE’s implementation the following
legal documents were prepared and approved:
•
National Action Plan for the implementation of NSE;
•
Energy Saving Law in Private and Public Buildings;
•
Energy Efficiency Law.
2.1.2. Bosnia & Herzegovina
No specific energy law or legislation on EE and energy saving in BiH nor does a common
strategy/policy on the state level for BiH exist.
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•
Energy Sector study (WB credit) – in preparation (fin. 2007)
•
Energy sector strategy (EC CARDS) – temporary stopped
•
Energy Community Treaty Implementation, in process
•
Neither Energy law nor Energy efficiency law on state level, except Electricity Act for
Transmission, ISO and Regulator (Federal Strategy for environment protection –under
preparation) – energy aspect included (fin. 2007)
•
BiH Strategy for Economic Development
•
Poverty Reduction Strategy Paper put emphasis on environmental protection and
energy saving as the indivisible part of the solution for fighting poverty.
•
Energy Charter Treaty and Energy Charter Protocol on Energy Efficiency and Related
Environmental Aspects (PEEREA) was signed by BiH in June 1995 and ratified in July
2000.
2.1.3. Republic of Bulgaria
Energy Strategy and Improvement of Energy Efficiency till 2010
National Long-term EE Program 2005 – 2015
National Strategy for Financing of Buildings Insulation for EE Improvement and Action Plan for its
implementation adopted by the Council of Ministers
National Target Program for EE in Buildings for 2007 approved by the Minister of Economy and
Energy;
National Program for EE Improvement in the Transport Sector through application of energy saving
measures;
National Long-term Program for promotion of the use of RES till 2015, adopted at the end of October
2006 by the Council of Ministers
Program •Partnership for accession to the EU: Preparation of Republic of Republic of Bulgaria
for negotiations for accessions to the EU, implementation of the economical criteria from
Copenhagen 1993, European integration and sustainable development; Improving the energy
efficiency
Renewable energy sources, promotion of their utilization in accordance with the programs of the
EU for sustainable development, public gas supply with natural gas; legislative regulation of the
fund on Energy efficiency; Harmonization of the Republic of Bulgarian legislation with the
European one, including in the field of the energy efficiency and renewable energy sources,
special accent on the energy efficiency development; Ensuring financial support for development
of the energy efficiency in Republic of Bulgaria
2.1.4. Republic of Croatia
“Republic of Croatia has not yet established a national savings target, an energy efficiency action
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plan or a regular system of energy audits of energy intensive industry. Republic of Croatia states
that difficulties in the implementation of the energy services directive could arise due to the
financial costs implied”. (Screening Report, Republic of Croatia, March 29, 2007)
Energy Efficiency Policy is Carried Out Through National Energy Programs:
•
Industrial Energy Efficiency Network
•
Program of Cogeneration
•
Building Energy Efficiency Program
•
Program of the Gasification of Republic of Croatia
•
Centralized Thermal Systems’ Energy Efficiency Program
•
Transport Energy Program
•
Energy Development of Republic of Croatia Islands
•
Energy Charter Treaty
•
National Strategy on Energy Development
2.1.5. Republic of Georgia
2.1.6. UNMIK
The Ministry for Energy and Mining was established in 2005. The Law on Energy No. 2004/8
stipulates: The Ministry responsible for Energy shall perform the following tasks related to the
implementation of an energy efficiency policy:
•
prepare implementation programs to promote the efficient use of energy and renewable
energy resources;
•
prepare proposals for incentives for the efficient use of energy and renewable energy
sources;
•
monitor energy efficiency and the realization of potential savings;
•
provide information to the public regarding energy efficiency issues;
•
encourage energy audits and local energy saving development plans;
•
prepare secondary legislation, after consulting the Energy Regulatory Office, for which
promote the efficient use of energy and use of renewable energy sources;
•
encourage the operation of non-governmental organizations acting in the public interest
in the energy sector; and
•
promote an increase in the contribution of renewable energy sources to electricity
production in the internal market and regional markets for electricity in conformity with
the indicative targets to be established in Article 12 of this Law.
Pursuant to Article 10 of the Law No. 2004/8 on Energy, and transposing the EU Directive 2006/32
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EC, the draft Administrative Instruction on End-Use Energy Efficiency and Energy Services
includes an indicative target of 1% energy savings per year for the first 3 years.
The UNMIK Program for Energy Efficiency and Renewable Energy Sources (KPEERES) 2007 –
2009 was adopted in 2007. It includes 18 proposed projects in different sectors.
2.1.7. Former Yugoslav Republic of Macedonia
Program for Rational Use of Energy until 2020
Energy Efficiency Strategy until 2020 adopted in October 2004
The basic objectives of the adopted EE Program are following:
i. To increase the energy efficiency of the economic entities in the Republic of Former
Yugoslav Republic of Macedonia by reduction of the energy consumption;
ii. To improve the technical aspects of the domestic industry for production of equipment
and facilities necessary for the realization of the measures for rational energy
consumption;
iii. To modify the economic structure by selection and application of new technology
solutions with low energy consumption;
iv. To move to a centralized supply with heat energy in all bigger urban areas through use of
domestic coal and geothermal thermo-energy potential.
A major focus of attention for Energy Efficiency improvement is the household sector, where there is
a very high potential for improvement: 18% of the total electricity used in households is for
heating.
The most important issues for the energy sector for the coming period are:
v. Measures for diversification of energy supply, especially penetration of natural gas,
whose consumption will be concentrated for electricity generation, in industry,
households and services,
vi. Improving energy interconnection (electrical power transmission lines, natural gas
pipelines) with neighboring countries and with countries in the region,
vii. Energy sector reorganization,
viii. Decreasing energy intensity and promoting energy savings
2.1.8. Moldova
i. National Program on Energy Conservation for the period 2003-2010. The program
acknowledges that at present the energy efficiency remains at a low level. The
government aims till 2010 to reduce the energy intensity by 2-3 % annually.
ii. Energy Strategy to 2020 establishes a list on EE measures by sector and the financing
sources. See the detailed list attached in Annex 1 Moldova hereto.
iii. The National Energy Efficiency Program is underway. It is due in January 2008.
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1.1.11.1. HEAT: Measures for achieving specific objectives in the heating sector according to
the Energy Strategy 2020:
On the Right Bank of the Nistru River, except for Chisinau and Balti, most of the cities have
decentralized systems of heating supply. A priority direction for developing the heating sector
is cogeneration and use of local fuels. The national program for renovation and
decentralization of heat supply systems includes proposals for upgrading heating supply
systems in all 36 residential areas across the country. Suggested systems are based mostly on
simultaneous generation of heat and electricity (cogeneration principle).
For the period 2007-2009 it is foreseen that another 874 sources of heat supply will be built
and upgraded absorbing a total investment estimated at 268.5 mln. MDL. Priority will be
given to heat supply in rural area establishments used for social, cultural and educational
purposes. As primary energy resources there will be used natural gas and local renewable
energy sources (solar energy, solid, liquid and gas biofuels). Within the framework of
promoting renewable energy from agricultural waste financed through a grant of the Global
Environment Fund, two heat stations using biomass have already been built to supply heat to
social facilities in the Sangerei and Stefan Voda districts. For 2007-2008 the building of four
additional similar stations has been scheduled. There will be stimulated construction of
heating and hot water supply systems with solar collectors that will create local supply
networks operating in parallel with centralized systems. Gradually there will be a switch from
natural gas and biogas fired sources to the use of cogeneration based on piston thermal
engines and mini- and micro-gas turbines.
The Energy II Project provides for the design and construction of two steam heating stations
and one on water, as well as external networks for distribution of heat, steam and hot water at
the Republican Clinic Hospital, the Cardiologic Institute, and the Oncology Institute. The
design and construction of the heating networks inside the Republican Clinic Hospital and the
Oncology Institute have also been scheduled and currently are undergoing.
By the year 2020 CET-1, CET-2 and CET-North are scheduled to be upgraded and extended
by the installation of efficient equipment with combined electricity and heat generation cycle.
To comply with environmental standards there will be implemented a procedure for the
certification and monitoring of heating networks and recommendations will be made for
improving energy efficiency indicators. Replacement of existing networks with pre-insulated
pipelines, the upgrading for heating points and the use of automatic heat regime regulation
systems directly at the consumers’ level will ensure reduction of heat losses at a level of about
10%.
Energy efficiency of heating systems will be increased, based on the following sequence of
actions and measures: installation of meters and radiator regulators; use of heating supply
scheme based on two pipelines and installation of thermo regulators with a thermostatic
element; installation of automation on heating systems in buildings (first stage) and upon its
finalization, implementation of quantitative (heat flow) regulation of heat supply at the source
of supply (heat station); upon decentralization of heating system, quantitative regulation will
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be used at sources of energy supply, while individual customers will be able to regulate both
heat flow and temperature to their individual thermal points; at local thermal stations and
some centralized thermal station there will be installed tampon-reservoirs to facilitate heating
load curve regulation; implementation of a heat distribution scheme based on horizontal
configuration in multi-story buildings, both for newly built edifices and for those
reconstructed or renovated.
Upgrade of the main pipelines and the inter- and intra-districts distribution networks will be
done through local interventions by replacing the existing pipes by pre-insulated ones, after
identifying the portions with greatest heat losses. The cost recovery period for the portions
replaced with efficient pipelines will be around 1-2 years. Efficient operation technologies
will be implemented in order to reduce the corrosion rate of ferrous metals pipelines and the
heat losses caused by increasing humidity of thermo insulation of heat transmission and
distribution networks pipelines.
Use of efficient technologies for building heat transmission and distribution networks in
centralized heating supply systems and optimization of heating supply schemes will allow to
increase economic efficiency, energy efficiency and the systems’ operational life.
1.1.11.1.1.
To secure efficiency in the heating sector, the same Energy Strategy proposes:
i. The use of transparent and controllable procedures in regulating relationships among heat
generators, transmission operators, distributors and customers will result in establishing
contractual clauses among all participants in the heating market.
ii. All existing public heating systems have been transferred under the authority of
municipalities, which will establish optimal options of heating supply to consumers, as
well as the legal form of entities providing heating related services. Clear criteria will be
formulated to select the technically and economically most appropriate long term source
of heat supply. Customers will be given the choice, where this is practically possible.
iii. The right to regulate activities related to establishing tariffs for heat will be transferred
from local public authorities to ANRE. This regulation will be exercised based on a
national tariff policy and methodology which encourages energy and operational
efficiency, investments and feasibility of supply. There will be revised legal and
regulatory frameworks in order to increase the consumers’ responsibility for paying
consumed energy. In this context, priority will be given to works related to energy
conservation and to securing individual metering of consumed energy.
iv. In order to increase the efficient use of primary energy resources, the upgrading of
existent thermal stations into CHP stations will be promoted based on the "cost-benefit"
principle. Simultaneously conditions for extensive use of renewable energy sources in
heat supply will be developed. The legislative, institutional, management, economic,
technical and other measures to be employed in the heat sector are presented in Annex I.
GAS: Measures in the natural gas sector
Development of the natural gas sector in the Republic of Moldova falls under the National
Program for Gasification in the Republic of Moldova and the National Program “Moldova
Village”. Implementation of this program has led to an increase of the number of villages with
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access to gas from 22 localities in 2000 to 725 in 2006. By 2010 it is foreseen to ensure provision
of natural gas service to all residential areas in the country.
To increase the operational efficiency of the gas sector, it is necessary to revise the National
Program for Gasification of Moldova once in every three years, and to introduce in it research and
evaluation of future natural gas locations from Goteşti, Baurci, Aluatu, Manta residential areas as
well as horizons at the depth of 1-3 km. The research will also include oil and condensate. The
State will retain ownership of gas as well as oil resources, while pursuing their exploitation
through concession agreements.
To implement measures provided in the National Program for Gasification of Moldova it is
necessary to build 186 km of upstream gas pipelines, 365 km of high pressure upstream
connecting pipes, 6265 km of intercity gas pipelines, 20 distribution stations and 7 gas
compressor stations. Upon extension of the distribution stations network, there will be considered
the option of mounting turbo installations of tent type for electricity generation by using the
differential of the gas pressure between the high pressure pipelines and the distribution network.
The total investment for complete provision of gas service across the country is about 2 billion
MDL (120 M€). In the short term, construction of the following gas pipelines is foreseen:
Tocuz-Cainari-Mereni, of 72 km length and estimated cost of about 20 M€, which is currently
near completion; and Balti-Ungheni of 95 km length and estimated cost of 43 M€.
Considering an increase in the demand of natural gas in a number of residential areas across the
country and the lack of State financial possibilities to cover this demand, these gas networks will
be developed by the year 2010 with participation of private capital with a view to ensuring
affordability of energy resources to consumers in particular residential areas.
To increase the operational efficiency of the gas system there will be continued works for
metering at consumption points, using modern means of data collection. At the same time it will
ensured, together with Ukraine, that the gas metering system is maintained according to European
precision standards and requirements at the country’s borders, on transit gas pipeline and intrasystem connecting pipes. Concrete actions to implement the objectives in the gas sector are
presented in Annex I hereto.
By 2010 the country shall approximate national legislation to the framework provisions of the
following EU legislation on natural gas22:
i. Directive 2003/55/EC of 26 June 2003 concerning common rules for the internal market
in natural gas;
ii. Regulation (EC) No 1228/2003 of 26 June 2003 on conditions for access to the network
for cross-border exchanges in electricity;
v. Directive 2004/67/EC of 26 April 2004 concerning measures to safeguard security of
natural gas supply.
Electricity GOALS according to Energy Strategy 2020
22
Energy Strategy 2020
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Distribution networks account for 50% of electricity system fixed assets as well as for the most
significant share of energy losses. A large part of distribution assets are privately owned and
operated. Significant factors that influence the operational security of the distribution system are
natural phenomena such as frost and stresses caused by wind. The structure of power lines
structure is not rational, while the physical condition and current age of some lines and equipment
exceed the operational life prescribed by technical rules. This results in reduced operational
security and quality of energy supply as well as in high technical losses.
The Republic of Moldova-European Union Action Plan provides for harmonization of
distribution networks design and operational standards with European Union standards, which
will allow building electricity distribution networks of advanced technologies. To this end
organizational infrastructure will be developed for the design and construction of distribution
power lines. The Research and Design Institute, as well as specialized construction and
installation companies, having necessary technical and technological equipment, are able to carry
out this work.
The upgrade of distribution networks and the building of new networks will be based on modern
solutions tested through operational experience in developed countries, so as to ensure energy
efficiency and reduce technical losses to acceptable levels (7-10%). On the assumption that a
complete reconstruction of 10 kV – 0,4 kV distribution networks is completed within 40 years, it
will be necessary to rebuild around 1000 km of network per year. The cost of such annual
investments for the reconstruction of distribution networks is estimated at about 20 M€ per year.
The strengthening of distribution networks will be carried out by giving priority to the
reconstruction of parts of the grid and elements for which technical and operational indicators do
not comply with current technical requirements. Strengthening actions will aim to improve
distribution capacities, supply quality electricity to consumers and reduce technological and
unjustified losses of distribution networks. This will be achieved by implementing
recommendations from accredited bodies, following energy audits within a time frame to be
established.
Development of distributed electricity generation based on renewable energy sources can only be
achieved if connection of these generation installations to the electricity distribution grid is
ensured. Local electricity systems will include photovoltaic installations (installed capacity of
over 0,5 kW), wind installations and micro hydropower stations (installed capacity over 10 kW)
integrated into centralized electricity distribution networks. Supplied energy will be purchased
from the producers and paid for in accordance with applicable legislation, introducing, amongst
others, feed-in tariffs.
Development of networks with insulated self-carried conductors and use of new intelligent
switches (reclouser) with a large spectrum of functional destinations include: protection from
short circuit and maximal current, rapid automatic release, automatic connection under the
reservation scheme, automatic melting of frost, metering and processing the parameters and
diffusion of primary information to distribution system operator, on-line supervision of current
technical condition, including energy consumption.
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Advanced technology networks will have an operational life of about 40 years. Coordination of
operation and development of distribution networks will be ensured by a legal framework that
will establish energy efficiency indicators for the networks and ensure quality of electricity
supply. There will be formulated a concept for developing distribution networks, accompanied by
developing a mandatory state program to be implemented by all business entities involved in
electricity distribution, regardless of network ownership.
Maintenance and development of the distribution network will be ensured through the
introduction of a distribution code, which shall be introduced by 2009. Together with the grid
code that will be introduced earlier for the high voltage network, the distribution code will
become a key instrument for the integrity of the country’s transmission and distribution systems
and their compliance with the rules of UCTE and the Energy Community. As in most countries
participating in the Energy Community, the distribution code will procure a minimum level of
investment required of distribution companies, and empower the Regulator (ANRE) to monitor
compliance with such obligations. Whether such obligations for maintenance and development of
the system are to be incorporated into the licenses held by distribution companies shall be
determined after the distribution code has been drafted and tariff methodologies have been so
adjusted as to account for the costs associated with such maintenance and capital investment
requirements of the distribution companies.
2.1.9. Republic of Montenegro
The Energy Law (2003) and the associated document ‘Energy Policy for the Republic of Montenegro’
(2005) define the broad responsibilities of the Ministry for Economic Development (formerly the Ministry
of Economy) regarding Energy Efficiency and Renewable Energy in Montenegro, as follows:
Article 3: For the purpose of fulfilling its obligations under this Law and other applicable laws, the
Government shall, through the Ministry:
a) realize Energy efficiency policies and encourage the conservation of Energy resources;
b) encourage and advise on energy efficiency and the rational use of Energy;
c) develop and promote incentives for the efficient use of Energy and renewable resources;
d) promote the increased use of Renewable Energy Sources and alternative energy sources for Generation
in the internal market; and
e) manage funds contributed for the purpose of Energy conservation and Energy efficiency.
In addition, the document entitled ‘Energy Policy of the Republic of Montenegro (2005) obliges the
Government of Montenegro and other authorised institutions to accomplish two additional goals
directly related to energy efficiency:
• Providing institutional and financial incentives for energy efficiency improvement and energy
intensity reduction in all sectors, including all parts of the energy chain, from generation to energy
consumption.
• Providing support for research, development, and promotion relating to new clean, and efficient
energy technologies and related to conducting of the energy policy on an expert and scientific basis.
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In line with the above provisions the “Energy Efficiency (EE) Strategy of the Republic of
Montenegro” was developed with EU Technical Assistance and adopted by the Government on 13
October 2005.
The EE Strategy provided, among others, for the adoption of an Energy Efficiency Law, the creation of
the Montenegrin Energy Efficiency Unit (MEEU) under the Ministry for Economic Development to
be in charge of EE and RES promotion and for establishment of an EE Fund. The EE Strategy needs to
be revised and updated to ensure consistency with the EDS and to take into account important
developments in EU such as the new Directive 2006/32/EC on energy end-use efficiency and energy
services, and the Action Plan for Energy Efficiency: Realising the Potential COM(2006)545 final.
The “Energy Development Strategy of Montenegro up to 2025” (EDS) was adopted by the
Government on December 2007 and recognises the importance of EE and proposes following three Key
Axes of interventions which should be promoted in parallel:
•
Establishment of the basic framework for EE (EE Law, EE central Institution and EE Fund) and
gradual development of the necessary legislative, regulatory and institutional framework for EE;
• Implementation of sectoral programmes for EE including provision of incentives, technical
assistance and promotional/ marketing activities
• Promotion of investments in EE by mobilizing international financial assistance, state and local
funds and private capital.
Recommended areas of activities for energy efficiency given in EDS are: framework for energy
efficiency, supply side, large industrial consumers, all consumption sectors, buildings sector (general),
public sector, households, transport sector, cogeneration (CHP) and district heating (DH).
Energy Efficiency Action Plans for 2006 and 2007 were adopted by the Government.
Under the EU/EAR project "Technical Assistance to the MEEU" following documents was prepared:
• EE Action plan (Work Plan) for 2008,
• EE Action plan 2008-2012,
• EE Action plan for Public Sector (2008-2012),
• Market Study and Strategy for space heating, cooling and EE in Residential Sector.
An Energy Efficiency Action Plan up to 2012 has been prepared (based on EC funded technical
assistance) with three key areas of interventions which it is proposed should be promoted in parallel:
•
Establishment of the basic framework for EE (EE Law, EE central Institution and EE Fund) and gradual
development of the necessary legislative, regulatory and institutional framework for EE
•
Implementation of sectoral programmes for EE including provision of incentives, technical assistance
and promotional/ marketing activities
•
Promotion of investments in EE by mobilizing international financial assistance, state and local funds
and private capital.
In parallel actions for development of local capacities and services in EE, research and development and
promotion of local manufacturing of EE should be implemented.
Taking into account the structure of the energy demand and the problems in different sectors it is
proposed that the following sectors are addressed in priority for EE measures:
• EPCG in the supply side and the major energy consumers in the demand side (KAP and Steel Works
Plant) should be addressed with individual specific EE programmes.
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•
The buildings sector (residential, commercial and public buildings) should be the main priority for
vigorous EE measures.
•
Transport as a significant energy consuming sector, should be also addressed with integrated EE plans.
Industry, other than the two main consumers, is less significant consumer. EE measures addressed to this
category of consumers should target also on increasing competitiveness and establishing the basis for
development on a healthy basis from EE point of view.
2.1.10.
Romania
Government Decision (GD) Nr. 163/2004 on the approval of the “National Energy Efficiency
Strategy” whose main aim is to identify the possibilities and means to increase the energy
efficiency overall in the power sector chain by implementing adequate programs.
GD No. 1535/2003 on the “Strategy to Render Valuable the Renewable Energy Sources” and GD
No. 443/10.04.2003 on the promotion of electricity production from renewable energy sources, as
amended by the GD No. 958/2005 (which transposes the Directive 2001/77/CE), which ensures
the legal framework to promote renewable energy sources with direct effects on reducing the
energy consumption at the final consumer level.
2.1.11.
Republic of Serbia
Republic of Serbian parliament in May 2005 has been adopted Energy Sector Development Strategy
of the Republic of Serbia by 2015. Energy Efficiency increase and wider use of renewable energy
sources (RES) are of the prioritized objectives.
In January 2007 Government of Republic of Serbia adopted Energy Sector Development Strategy of the
Republic of Serbia by 2015 Implementation Program for the period 2007-2012 (POS 2007-2010).
The Program contains 15 chapters including chapters:10. Communal energy services and individual
boiler houses; 11. Industrial Energy Systems; 12. Energy Efficiency; 13. Renewable energy sources;
14 Energy Efficiency Fund. In the chapters 10, 11. and 12. and particularly in chapter 12, The
Programe describes the energy efficiency situation in the various energy consumption sectors
(buildings, industry and transport) and it estimates the energy saving potential which can be reached
by implementation of various technical measures. Having in mind the existing barriers, particularly
elaborated in the chapter 12, all three chapters clearly identify regulatory, organizational and other
measures that must be implemented by 2012 in order to enable increase of energy efficiency in all
energy consumption sectors. Among the most important non technical measures for increase of
energy efficiency the Program identifies adoption of the Law on rational energy use and establishment
of the Energy Efficiency FundPreparation of the Sustainable Development Strategy is under
progress (at the final stage). One of the bases of this Strategy is an improvement of the energy
efficiency and wider use of RES.
Development of the Strategy on Introducing Cleaner Production is in progress (at the final stage).
2.1.12.
Turkey
EU Directives
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2.1.13.
Ukraine
Comprehensive State Program on Energy Conservation - The program covers period to 2010 and is
based on energy and economic growth forecasts;
Comprehensive State Program on Energy Conservation 2007-2020 is in the development process
Energy Strategy to 2030 approved by President Decree in March 2006
Program for the State Development Support
Agreement to the Energy Charter and Minutes on EE and allied environment issues
"Concept on the Ukrainian wholesale power market operation and development”
Law on Heat Supply
2.2.
EE funds, their sources and eligibility criteria
2.2.1. Republic of Albania
According to the National Strategy of Energy, the Council of Ministers shall establish an energy
efficiency fund to be used only for energy efficiency and energy conservation purposes.
The energy efficiency fund may be financed from: 1) state budget, 2) international grants, 3) private
sources, and 4) electricity customers bill in cases when the Electricity Regulatory Entity decides
to implement energy conservation programs for different categories of customers of power sector
pursuant to Articles 8(2)(e) and 28(2)(g) of the law No.9072, dated 22 May 2003 “On power
sector.”
2.2.2. Bosnia & Herzegovina
The International Finance Corporation has signed an agreement with Raiffeisenbank BosniaHerzegovina to provide a €350,000 grant, which will allow it to develop and roll out energy
efficiency housing loan products in the country.
2.2.3. Republic of Bulgaria
The Republic of Bulgarian Energy Efficiency Fund (BgEEF) was established through the Energy
Efficiency Act adopted by the Republic of Bulgarian Parliament in February 2004. (its major
donors being: the Global Environment Facility through the International Bank for Reconstruction
and Development (the World Bank) - USD 10 million; the Government of Austria - Euro 1.5
million; the Government of Republic of Bulgaria - Euro 1.5 and several private Republic of
Bulgarian companies. BgEEF is available to: municipalities, corporate entities and private clients.
http://www.bgeef.com
Eligibility criteria:
•
At least half of the project's benefits should come from measurable energy savings;
•
The project should involve the application of well-proven energy saving
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technology;
•
The project cost should range between BGN 30,000 and BGN 3,000,000
although exceptions are possible if strongly justified;
•
The equity contribution of the Project Developer should be at least 10% under a cofinancing scheme "BgEEF-commercial bank" and 25% for BgEEF stand-alone
financing;
•
The project must have a payback time of up to five years.
Kozloduy International Decommissioning Support Fund
Established by an agreement with the EU to mitigate the consequences of the early
decommissioning of some units of Republic of Bulgaria's Kozloduy nuclear power plant.
Finances EE projects and RES projects of companies (incl. municipal companies/utilities)
•
6 servicing commercial banks
•
Market based interest rate
•
Loans usually up to € 2 million
•
Subsidies to the client:
•
7.5% for energy efficiency projects
•
20% for RES projects
EIB / Raiffeisenbank credit line (Oriented to finance municipal infrastructure) Volume: € 20
mil (from European Investment Bank), € 20 mln (from Raiffeisenbank). EIB finance up to 50% of
project cost Raiffaisenbank finance the rest of the project cost. Project size: € 40 000 - € 5 mil.
Grants: 2,5 – 5% over project cost PHARE program)
Residential Energy Efficiency Credit (REECL) Facility aims to give householders across Republic
of Bulgaria an opportunity to realize the benefits of energy efficiency home improvements by
providing them with loans and incentive grants through local participating banks. Householders
can obtain incentive grants from €350 to €2000. For equipment and materials to be approved
under the REECL program so that they can be used in personal loan and grant funded
installations, manufacturers and suppliers must certify that their products and materials meet the
eligibility criteria by filling in and sending the eligible technology registration form to the REECL
Project office. They must also send with the registration form supporting evidence as detailed in
the criteria.
2.2.4. Republic of Croatia
The Environmental Protection and Energy Efficiency Fund of the Republic of Republic of
Croatia is a structured extra-budgetary fund which finances projects and activities in three basic
areas: environmental protection, energy efficiency, and the use of renewable energy sources. It
has been established by the Law on the Environmental Protection and Energy Efficiency Fund on
July 1st 2003 (Official Gazette of the Republic of Republic of Croatia No. 107/2003).
ESCO companies
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Republic of Croatian bank for development and reconstruction
Private banks
Energy efficiency tenders
CO2 reduction/clean production projects
2.2.5. Republic of Georgia
EEC has Revolving fund, after energy audit EEC helped (only companies not households)
implemented EE measures. Information about this is on our site too.23 EBRD credit line $38 mil.
USD started recently
2.2.6. UNMIK
In 2003, a study was finalized which was financed by EAR on the implementation of the Energy
Efficiency Programmed in UNMIK. It proposed the establishment of a UNMIK Energy
Efficiency Agency KEEA and of an energy efficiency fund. However, the implementation of an
energy efficiency fund was rejected by the Assembly of UNMIK.
2.2.7. Former Yugoslav Republic of Macedonia
“Though the establishment of an Energy Efficiency Fund is stipulated in the Energy Efficiency
Strategy and the Energy Law, it had not occurred by the end of 2006 and energy efficiency
funding is not allocated from the national budget, but is based on international cooperation,
including IBRD/GEF, USAID and EBRD and private European funding (PEEREA 2006a).”
Latest Development of Energy Service Companies across Europe - A European ESCO Update Authors: Paolo Bertoldi, Benigna Boza-Kiss, Silvia Rezessy Institute for Environment and
Sustainability, p.74
2.2.8. Moldova
Energy Efficiency Fund was created by art. 16 of the Law on Renewables No. 160-XVI of July 12,
2007. The EEF is a legal entity independent and financially autonomous. The financial means
shall originate from: government allocations, private donations of foreign and local donors and
IFIs, financial own income from interests and commissions on contracts, credits and financial
instruments of banks or investors attracted to reach the goals of EE and RES promotion in the
country.
The EEF financial means will be open to any legal and legal entity proposing EE improvement
and RES use projects. The EEF will offer soft loans and grants, as well as guarantees for the
banks.
RM Government Decision “Approving the Regulation of Ecologic Funds”24 No. 988 approves
23
For more information see www.eecgeo.org.
24
Government Decision of the Republic of Moldova “Approving the Regulation of Ecologic Funds” No. 988 of September
21, 1998 published in the Official Monitor of the Republic of Moldova No 92-93/962 of September 1998.
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the regulation for the Ecologic Funds. The Ecologic Funds aim at collection of additional
financial means for financing environmental measures and rehabilitation of ecosystem. The local
Ecologic Funds are subordinated to the State Ecologic Inspectorate, while the National Ecologic
Fund – to the Ministry of Environment and Natural Resources. The funding capacity of this Fund
is 1 million USD per year. It provides financing for environmental projects. A limited amount, up
to 10% of its funds can be used for energy efficiency purposes.
The money of LEF and NEF not used during the current year are transferred for the next year for
their use according to the destination.
Ecologic funds may provide the following financing:
•
non-reimbursable subsidies or donations (grants);
•
non-interest or low interest loans;
•
guarantee for loans; and
•
subsidies to cover the interest for loans issued to organizations that applied for bank credits for
environmental protection projects.
The Environment Fund (EF) finances only environment protection projects, which went
through certain stages of selection and evaluation on a tender basis.
The GD sets forth the priority directions for financing from the Environmental Funds. These are
the measures for implementation of national programs and action plans in the field of
environment protection; measures for implementation of international obligations assumed by
the Republic of Moldova under international agreements and conventions; and the actions
directed towards reducing the emissions. Under the law, no less than 70% of the EF’s
accumulated resources are to be used for the purposes listed above.
The National Ecologic Fund (NEF) has the following sources:
•
means allocated by Local Ecologic Funds;
•
compensations for emissions into the atmosphere. The compensations are paid to the fund by the
transport entities using petrol (ethylic and non-ethylic) aviation fuel and diesel;
•
compensations for damages caused to fish reservations. The compensations are calculated in
compliance with a methodology approved by the line ministry;
•
voluntary donations of legal entities and individuals, grants of international donors;
•
means originated from NEF’s own activity (dividends, interest on contributions, bank deposits,
proceeds from operations with state securities, etc.);
•
fees charged for examination of applications and documents submitted for issuance of the
ecologic permissions and authorizations for export, import, and re-export of plants and wild
animals;
•
payments charged for products, which cause environment pollution upon use.
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The means of the NEF are open for:
•
Financing the projects called to implement strategies, national programs and plans for
environmental protection, standards and norms;
•
building or partially participate in construction of environmental protection objects (including
financing the design and execution of water supply and sewerage works; garbage collection and
selection etc.)
•
scientific researches in environment requested by the line ministry. Partial participation in
scientific researches for developing environment protection projects of local and international
importance;
•
organization and introduction of an environment information and advertisement system, ecologic
public education;
•
awards to experts from different departments. Up to 1% of NEF means are provided for this
purpose;
•
creation of the material-technical basis and introduction of a statistical recordkeeping of ecologic
funds;
•
organization of international cooperation for environment protection, including outsourcing
foreign experts for consulting, expertise; participation of country’s representatives in
international ecologic conventions; payment of membership fees to the ecologic intergovernmental organizations;
•
implementation of SITEC Convention, including developing the authorizations, procurement of
special SITEC marks, etc.;
•
elimination of the consequences of natural calamities, production accidents and other situations
which may damage the environment;
•
financial support to ecologic non-government organizations based on a targeted grant program
for environment protection
2.2.9. Republic of Montenegro
EE state Fund for implementation of Annual Energy Efficiency Action Plans is established on 2006, as
separate line in State budget. For 2006 it was 50 000 €, 2007 - 50 000 € and 2008 - 55 000 €. This EE
fund is operated by Ministry for Economic Development, and MEEU proposes activities which will be
implemented.
It is expected that international donors and financing institutions, as well as the private sector will
finance EE investments. However there is need for the creation of a Fund for EE (and RES) and possibly
local funds on municipality level to finance preparation and support of implementation of donors’
programmes, as well as actions that are not covered by them.
The Fund can be established by the EE Law (2008). Normally it will be a special bank account,
managed by a Fund Board. Day to day operations could be undertaken by MEEU and later by the
Agency. A system of reports, checks and balances should be established to ensure transparency.
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The financing sources of the Fund could be the state budget, contributions of utilities and energy
suppliers, fees and penalties, international donations, possible special tax on conventional fuels for EE
and RES, etc.
A special study for the Fund’s design, drafting of statute and necessary by-laws should be carried out as
a part of the broader study for the establishment of the EE Agency and drafting of the EE Law.
2.2.10.
Romania
The Romanian Energy Efficiency Fund (FREE) began operations and providing commercial
financing for industrial and other energy consumers for energy efficiency projects in 2003.
2006 -2007 National Program to reduce energy bills for the population.
Romanian Energy Efficiency Fund (FREE), created by Law No. 287/2002 as an institution of
public interest having its own legal personality, independence and financial autonomy and
headquartered in Bucharest. According to the Grant Agreement signed between the Romanian
Government and the International Bank for Reconstruction and Development (IBRD) and ratified
through Emergency Ordinance No. 188/2002, the Fund's purpose is the management of financial
resources received by Romania from the Global Environment Facility (GEF) through the IBRD.
Eligibility criteria:
•
Financing requested should be between 100 000 and one million USD;
•
20% of the financing shall be covered by the beneficiary (own or other sources);
•
Investment payback period must be no more than 4(5) years;
•
Investment will bring financial benefits, at least 50% thereof originating from
energy savings or primary energy resources;
•
Positive financial results that will show potential for development and support of
the investment proposed for financing;
•
Environmental authorization existing or underway;
•
Project not implied in economic activity of the tobacco, alcohol and weapons
industries;
•
Promotion of investments independently or through PPPs;
•
Investments shall be preferably made in simple technologies already proven to work
in practice.
Special Fund for Energy System Development (SFESD), founded by Government Decision No.
29/1994, used for energy conservation projects. SFESD is managed by the Ministry of Industry
and Resources (MIR) through the Romanian Agency for Energy Conservation (ARCE).
Environmental State Fund is a financial and economic tool created to support the development of
the projects included in the National Environmental Action Plan in conformity with the
environmental norms and standards already in force and envisages, as a main objective, the
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necessary investments for the adoption of the Acquis Communautaire. The institutional
framework for the Environmental Fund is established by the Environmental Fund Administration,
a legal public utility body, under the authority of the Ministry of Agriculture, Forests, Water and
Environment (MAPAM).
2.2.11.
Republic of Serbia
Energy Sector Development Strategy of the Republic of Serbia by 2015 Implementation Program for
the period 2007-2012 foresees establishment of the Energy Efficiency Fund as a very important
tool necessary to increase energy efficiency and stimulate rational energy use in Serbia. The
chapter 14. of the Program elaborates in detail the model for Fund establishment and operation.
Legal framework for establishment of the Fund should be created through amendments to the
actual Energy Law, the responsible authority for which is MoME
2.2.12.
Turkey
Energy Efficiency Finance Facility with CEB/KfW and with EIB
In 2006, the European Commission decided to establish two multi-beneficiary programs on
energy efficiency, together with the Council of Europe Development Bank in co-operation with
Kreditanstalt für Wiederaufbau and the European Investment Bank. The projects will cover
Republic of Bulgaria, Romania, Republic of Croatia and Turkey. Both projects aim at providing
financial assistance to the acceding and candidate countries in increasing investments in energy
efficiency. The total budget of the “Energy Efficiency Finance Facility” is € 145 million (€ 29
million EC contribution + € 92 million CEB/KfW + € 24 million EIB).
EU Commission approved the establishment of the FEMIP (Facility for Euro-Mediterranean
Investment and Partnership) support fund for Turkey in 2005. The Fund aims at financing
technical assistance activities complementary to EIB operations. Total budget is € 3 million and
50% of the funds is allocated for infrastructure related projects. The fund can be used as a tool to
support large scale EIB interventions in the energy area as well.
EU Energy Policy and Turkey Press Release, Reference: MEMO/07/219 Date: 01/06/2007
2.2.13.
Ukraine
The following entities are operating:
a. Energy-saving state extra-budgetary fund,
b. EE agency for energy-saving state extra-budgetary fund.
Financial sources are the following: municipal budgets, the World Bank, SIDA, and EBRD.
2.3.
Economic and financial incentives for EE measures
c. tax exemptions,
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d. subsidies,
e. rebates,
f. grants,
g. soft loans,
h. financial guarantees,
i. voluntary agreements,
j. white certificates
k. other
2.3.1. Republic of Albania
2.3.2. Bosnia & Herzegovina
No incentives provided by the state.
2.3.3. Republic of Bulgaria
“ Bulgarian Government has been trying for more than three years to adopt different schemes and
techniques to incentive Energy Saving Services and Technologies, starting from “Energy
Efficiency” Fund to ESCo promotion, besides usual Bank and/or credit loans and European
Structural Funds Programs and the possibility to change an instrument which is not apt to reach
expected results is already foreseen.”
The only incentive is the grant 15% over the credit amount provided from Energy efficiency and
RES credit line: http://www.beerecl.com/pg02_e.htm
2.3.4. Republic of Croatia
Act on Amendments to the Energy Act, Art 10:
o (3) Financial incentives for the use of renewable energy sources, energy efficiency and cogeneration
shall be governed by this Act, Act on Heat Production, Distribution and Supply, the Act on the
Environmental Protection and Energy Efficiency Fund and the State Aid Act.
o (4) Entities granted incentives in project construction for the use of renewable energy sources and
cogeneration shall not supply energy generated by such projects to international markets without
approval of the Government of the Republic of Republic of Croatia.”
o Article 19 (3) At the proposal of the Ministry, and having obtained a positive opinion from the
Agency, the Government of the Republic of Republic of Croatia shall define incentives for
generation from renewable sources and cogeneration, and pass the tariff system for electricity
generation from renewable energy sources and cogeneration.
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2.3.5. Republic of Georgia
Republic of Georgia has no economic and financial incentives for energy efficiency measures.
Nowadays, as prices on electricity and gas increased market based incentives exist, but there are
no regulatory agencies or legal institutions.
2.3.6. UNMIK
Not available.
2.3.7. Former Yugoslav Republic of Macedonia
Sustainable Energy Program is going on. Under this program a grant of 5.8 million USD from the
Global Environment Facility (GEF) is received, through the World Bank as an implementation
agency. The basic objective of this Program is to stimulate investments in energy efficiency and
use of renewable energy sources by removal of institutional and financial barriers.
The project has three components:
a. Market Framework, including: 1) technical assistance to the Government in designing and
implementing policy and secondary legislation on the inclusion of renewable energy in the
electricity sector; and 2) project development and project investment support.
b. Support to Utility-based ESCO under the umbrella of the Former Yugoslav Republic of
Macedonian Market and Transmission System Operator (MEPSO). The ESCO will help to
stimulate the market for energy services by providing turnkey and performance-based
contracting for energy efficiency, and by demonstrating the financial performance of such
projects using third-party financing for publicly-owned buildings.
c. Sustainable Energy Financing Facility, consisting of a loan guarantee facility and a debt fund, on
a co-financing basis with commercial institutions and the Former Yugoslav Republic of
Macedonian Bank for Development Promotion (MBDP).
d. The State Energy Agency will issue and maintain a registry of guarantees of origin for electricity
produced from renewable energy resources and from high-efficiency cogeneration facilities in
the former Yugoslav Republic of Macedonia.
2.3.8. Moldova
The local energy conservation equipment manufacturers are granted with VAT exemption and 50%
sales tax cut for 5 years for the sale of the EE equipment.
The energy generation companies with generation capacity not exceeding 20 MW can sell the excess
power at market price.
The list of energy efficient equipment favored under the present Law is included in the State Budget
of the current year.
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2.3.9. Republic of Montenegro
Economic and financial incentives are proposed under the Energy Efficiency Action Plan.
In addition, this topic will be defined by future EE law.
2.3.10.
Romania
Established long-term agreements, co-financing, and other incentives do not yet exist in Romania.
Art. 18(3) of the Law 199/2000 grants the importers of appliances, machinery and equipment for
the implementation of energy-efficiency improvement projects the right to enjoy a customs tax
exemption approved by the common orders of the Minister of Industry and Resources, Minister of
Foreign Affairs, and Minister of Finances at the proposal of the National Agency for Energy
Conservation.
2.3.11.
Republic of Serbia
The Provincial Secretariat for Energy and Mineral Resources of Vojvodina Province has provided
funds of around 110,000 EUR for the improvements energy efficiency in schools and
kindergartens in undeveloped municipalities in Vojvodina province (co-financing 50 % of the
investments value).
“Serbia Energy Efficiency Project (SEEP)” aimed, among the rest, improvement of Energy
Efficiency in public buildings through financing by the World Bank IDA-credit and IBRD-loan,
with co-financing from the budget of the Republic of Serbia. The Project has been implemented by
the Ministry of Mining and Energy, SEEA and other relevant ministries.
2.3.12.
Turkey
EE Law, art. 8: Energy efficiency implementation projects shall be supported according to the
following principles:
Those implementation projects which are submitted by industrial establishments to the General
Directorate, approved by the Board upon the affirmative opinion of the General Directorate, have
a payback period of at most five years, and cost at most five hundred thousand Turkish liras by
the project cost shall be subsidized up to twenty percent of the cost.
Twenty percent of the energy costs shall be paid for the year of agreement for the industrial
establishments owned by natural or legal persons who make voluntary agreements with the
General Directorate committing to reduce the energy intensity at least ten percent on the average
within three years for the undertaking and who keep such commitment, considering the budgetary
means and not to exceed one hundred thousand Turkish Liras.
Energy generated by those natural and legal persons, who conclude voluntary agreements, from
the energy consumed in the industrial establishments, in the heat and electric energy conversion
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facilities by modern waste burning techniques, in the cogeneration facilities described in the
subparagraph (a) of the first paragraph of Article 9 and manufactured in the country or generated
using hydraulic, wind, geothermal, solar and biomass sources shall not be taken into account in
the calculation of energy intensity.
The Turkish Scientific and Technological Research Institution shall in priority subsidize research
and development projects for increasing energy efficiency projects and utilizing new and
renewable energy projects; and consult the opinion of the General Directorate for directing and
assessing such projects.
Art. 9, p.1, (a) Those projects which are prepared to increase energy efficiency in the existing
systems of industrial establishments, approved by the Board and have minimum investment size
above the threshold set by the Council of Ministers, and those cogeneration investments which
achieve annual average efficiency values defined in the regulation to be issued by the Ministry
based on the fuel types and technologies used shall be allowed by the Undersecretariat of
Treasury to benefit from investment incentives.
For small and medium scale enterprises, training, audit and consulting services for energy
efficiency procured by enterprises defined in the Law no.3624 dated 12.04.1990 on Establishment
of the Directorate of Small and Medium Scale Industry Development and Support Administration
shall be subsidized by the Directorate of Small and Medium Scale Industry Development and
Support Administration. Principles and procedures for such practice shall be laid down in a
regulation to be prepared jointly with the Ministry and issued by the Ministry of Industry and
Commerce.
No fees shall be charged for authorization certificates and energy manager certificates of the
companies established by the foundations.
EE Law, Art 15 – The following paragraphs added to the end of Article 3 of the Law no.4628.
"The relevant regulation shall lay down those natural and legal persons who establish
cogeneration plants in order to meet self requirements only, at efficiency above the threshold set
in the regulation to be issued in the Ministry, and are to be exempted from the obligation to obtain
licenses and establish companies.
Those natural and legal persons who establish a production plant, in order to meet self
requirements only, with installed power maximum at two hundred kilowatts based on renewable
energy sources, and a micro-cogeneration plant are exempted from the obligation to obtain
licenses and establish companies”.
EE Law: Art.18 – Article 8 of the Law no.5346 has been amended as follows.
Where any property owned by the Forestry or the Treasury or under the possession of the State is
to be used to generate electric energy from renewable sources under this Law, the Ministry of
Environment and Forestry or the Ministry of Finance shall grant permission against a fee, grant
lease, establish easement or give permission of use for the lands to be used for the plant, access
roads, and the power transmission line up to the network. A discount of eighty five percent shall
apply to the fees for permission, lease, easement or permission of use for the first ten years of the
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investment and operation periods of the plants to be commissioned by the end of 2011, access
roads and the power transmission line up to the network. For forest lands, ORKÖY or Forestation
Special Allotment Revenues shall not be charged.
2.3.13.
Ukraine
Tax incentives for energy savings are provided to enterprises producing of energy saving equipment,
appliances and materials, metering, control and management devices for fuel and energy
consumption.
Money from the energy saving funds shall be used to finance energy efficiency measures including
energy saving research and development work, share participation in the implementation of
energy saving programs designed for economic restructuring, development and application of
energy efficient technologies and equipment, granting credit benefits and subsidies for
development and implementation of energy efficient measures and programs. Money from energy
saving funds shall be also used to promote renewable energy, conducting state energy audits,
personnel training and re-training, setting energy standards and norms, participation in providing
technical assistance to enterprises for energy accounting, control and management. Money from
energy saving funds shall not be included in the budget.
Priority credits shall be given to provide energy saving measures implemented in accordance with
recommendations given by local state energy inspection bodies including research and
development expenses, experimental models and appliance development, implementation of
highly efficient industrial technological processes, equipment and materials. Under this initiative,
favorable loans shall be provided to enterprises and consumers for acquisition of fuel and energy
for energy saving technologies, equipment, materials, measuring, control and management
devices for fuels and energy consumption, and also investments in construction of energy
efficient buildings and facilities, provided the appropriate expert decision made by energy saving
managing bodies.
The amount of interest rate reduction depends on energy efficiency of the implemented measures.
The loss incurred by the crediting institution will be compensated from the energy saving fund.
Tax benefits shall be granted to enterprises that use equipment operated on alternative and renewable
energy sources.
Law on amendments to some legal acts stimulating measures on energy conservation № 760-V
as of March 16 (active as of Jan.01, 2008) provides changes to the following legal acts : Law on
energy conservation, p. 16: Tax incentives are provided to enterprises producing energy saving
equipment, materials, devices for metering, control, and energy cost management, equipment for
the use of renewables and enterprises using renewable energy sources.
Law on energy conservation, p.. 17 In case of exceeding the normative indicators of weighted
energy losses, enterprises shall specially pay an energy fee in the amount of 200% of the cost of
surcharged resources except for the energy received from the renewable energy sources.
Code of Ukraine on Administrative Violations: art.98 sanctions applied to officials and officers
violating the use of energy have been increased.
Law of Ukraine on Cogeneration Art 9:
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Owners of CHPs irrespective of the installed power capacity are granted the right of a free access
to local power networks and sale of the generated power to particular consumers based on the
Agreement, including the right of supplying the power to consumers during the peak and halfpeak hours with the main power suppliers at the same time.
Owners of the qualified CHPS are granted the right equal to other power producers and suppliers
to sell the whole amount of the generated power or part of it to the wholesale power market of
Ukraine, local power supply companies, as well as based on the contracts to all consumers
throughout Ukraine irrespective of the CHP’s power capacity with tariffs established by the
National Energy Regulation Commission of Ukraine.
Heat and Power tariffs resulted from the qualified CHP generation are exempted from the
targeted markup until 2015
2.4. Policies facilitating import and local manufacturing of EE
materials
•
Incentives, equal competition and level playing field for EE service providers (e.g. ESCOs,
installers, energy advisors and energy consultants) to independently offer and implement the
energy services, energy audits and energy efficiency improvement measures.
2.4.1. Republic of Albania
2.4.2. Bosnia & Herzegovina
“The existing legal regulations and tax policy in the civil engineering, construction and building
industry do not encourage the saving in energy either (such as greater use of insulation materials
in construction, and more cost-efficient building of heating systems), so that the majority of the
(reconstructed) buildings dissipate a lot of energy.”
Bise – Energy Efficiency Networking Activities 2005
2.4.3. Republic of Bulgaria
In general no support.
2.4.4. Republic of Croatia
GEF/WB Project HEP ESCO (GEF grant, 6 years, loans from WB/GEF, HEP equity, domestic
banks) GEF grant, 6 years, loans from WB/GEF, HEP equity, domestic banks)
2.4.5. UNMIK
The draft Administrative Instruction on End-Use Energy Efficiency and Energy Services includes in
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Article 7 the market opening for energy service companies (ESCOs), providing conditions of
equal competition to ESCOs, installers, energy advisors and consultants, to independently offer
and implement energy services, energy audits and energy efficiency improvement measures. It
defines qualification requirements and certification schemes for energy auditors.
2.4.6. Former Yugoslav Republic of Macedonia
Not Available
2.4.7. Moldova
Not Available
2.4.8. Republic of Montenegro
No such schemes currently in place.
2.4.9. Romania
Not yet. ARCE and the Berlin Energy Agency work to introduce the legal framework for energy
performance contracts (EPC), which are the basis for energy service companies’ activities.
Law No. 199/2000 on the efficient use of energy, as modified and completed by Law 56/2006,
republished in 2007, whose aim is to set up the necessary legal framework for the drawing up and
application of the national policy for the efficient use of energy.
Minister Ordinance for approval of the regulations for energy auditors and managers certification
2.4.10.
Republic of Serbia
The Provincial Secretariat for Energy and Mineral Resources of Vojvodina Province has been
provided money (co-financing 50 % of the investments value), in total around 110,000 EUR for
the improvement energy efficiency in schools and kindergartens in undeveloped municipalities in
Vojvodina province.
There is no a formal legal authority for ESCOs, but it can be municipality or industry, depends on
who is the owner of the property. Energy Sector Development Strategy of the Republic of Serbia
by 2015 Implementation Program for the period 2007-2012 (POS 2007-2010) foresees a
development of national regulations on conditions for operation of the ESCO companies. There
are several realized projects in municipalities (public street lighting) based on ESCO model. Also,
there are a couple of ESCO companies in Republic of Serbia. However, a precondition for
successful contracting is that the cost reflective energy prices are achieved, which is not the case
yet.
Energy Sector Development Strategy of the Republic of Serbia by 2015 Implementation Program
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for the period 2007-2012 (POS 2007-2010) foresees an introducing energy passport system in
buildings.
2.4.11.
Turkey
Not Available
2.4.12.
Ukraine
Order of the Cabinet of Ministers #628-p as of 30.07.98 “On measures to introduce competition basis
in the housing fund and associated territories maintenance sector” allows to introduce alternative
forms of housing fund maintenance providing the basis for rendering services by non-traditional
housing communal enterprises (ESCOs etc.).
Law on amendments to some legal acts stimulating measures on energy conservation № 760-V as
of March 16, 2007 provides the following:
•
The following equipment and materials are exempted from paying customs duties:
•
Equipment working on non-traditional and renewable energy sources, energy saving devices
and materials, devices of control and energy cost management, equipment and materials for
renewable energy production imported to Ukraine by domestic enterprises with a condition
that these goods shall be used by them for their own production cycle and if identical goods
with similar indicators are not produced in Ukraine.
•
Equipment and pieces, imported to Ukraine and used for the production of the equipment
working on non-traditional energy sources and renewables; energy saving equipment,
materials and goods which provide saving and rational use of energy.
•
.7.20, the following income is exempted from tax:
•
Income of the enterprises, received from selling the equipment working on non-traditional
and renewable energy sources on the territory of Ukraine, energy saving equipment, devices
for metering control and energy cost management, equipment for production of nontraditional and renewable energy sources with a condition that the amounts freed-up as a
result of the tax exemption shall be used for the increase of the production volumes;
•
Income of enterprises included in the State Registry of Enterprises, Institutions and
Organizations dealing with the development, implementation and use of energy saving
measures and energy efficiency projects not exceeding 50% of the size of the taxed income.
•
Income of Research and Project-Construction Institutes if was received as a result of selling
the equipment or research works in the sphere of energy saving.
•
“Law on Taxation of Enterprise Income”: 25% of the income tax amount - subject for
payment by enterprises using or working on non-traditional and renewable energy sources
with a considerable amount of energy savings - stays at the disposal of these enterprises and
directed exclusively for financing of energy saving measures.
•
and providing guidance on appropriate measures in various sectors and applications.
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2.5. Programs and provisions for promoting EE in the public
sector
The Municipal Network for Energy Efficiency (MUNEE) was a network of non-governmental
organizations, municipal associations and other groups dedicated to accelerating the implementation
of energy efficiency projects in cities across Eastern Europe and the Former Soviet Union. The
Network was managed by the Alliance to Save Energy and is funded by the United States Agency
for International Development (USAID). MUNEE designed innovative policies on the national and
municipal levels and strengthened the capacity of local stakeholders to attract energy efficiency
investments. The network disseminated practical information, such as successful cases of how
municipalities have cut heat and energy costs, freeing up resources to provide better public services.
MUNEE also offered a series of tools that give local governments the ability to act.
A well-designed method for this dissemination – strong MUNEE partners, in-country workshops,
regional conferences, websites, concrete products translated into local languages, etc. – all helped
replicate past USAID and other donor efforts at relatively low-cost, an effective way to magnify the
effect of all of the assistance provided by USAID. The Alliance has or has had MUNEE activities
and programs in Armenia, Republic of Albania, Bosnia, Bulgaria, Czech Republic, Poland,
Hungary, Moldova, Russia, Republic of Serbia, Ukraine, Romania, Kazakhstan, Latvia, and
2.5.1. Republic of Albania
2.5.2. Bosnia & Herzegovina
“The latest BiH Strategy for Economic Development as well as the Poverty Reduction Strategy Paper
(PRSP) put emphasis on the environment protection and energy saving as the indivisible part of
the solution for fighting poverty.” Bise – Energy Efficiency Networking Activities 2005
2.5.3. Republic of Bulgaria
The electric, thermal and natural gas energy consumers in building –block of flats - may establish
legal entities/associations according to the terms under Article 152 of the Energy Act, which may
apply for financing of projects for promotion of energy efficiency through the “Energy Efficiency
Fund”.
Pilot project “Energy Efficiency in state and public buildings – education, health, culture” at the
amount of 5 mil. Euro financed by International Fund “Kozloduy”
In 2004 the Republic of Bulgarian Government approved a strategy document “Implementation of the
Strategy in the Energy Sector for mitigating the negative economical, ecological and social
consequences of the early closure of VVER-440 units of Kozloduy NPP in the non-nuclear
sector”, in which recommendations have been given. The following areas in the energy sector
have been identified as of equal importance and subject to further development and KIDSF
support:
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•
Co-generation;
•
Utilization of renewable energy sources (e.g. wind, hydro, biomass, solar);
•
Production of fuel from biomass sources (biofuel);
•
Replacement power capacities;
•
Development of national power and gas systems;
•
Energy efficiency at the industrial, public and private end-consumer’s level;
•
Energy efficiency in production, transmission and distribution of energy.
The twinning-project between Republic of Bulgaria and Italy funded by the EU, for Institutional
Building at the Energy Efficiency Agency (EEA) started officially in March 2006. The project
duration is till October 2007. The overall objectives of the Twinning project are:
•
Legislative harmonization in line with the acquis. Updates of EE Law, if necessary.
Enhance the EEA staff capacity and operational tasks under the new Energy Efficiency
Law.
•
Enhance the public awareness, information and positive attitude on energy efficiency
/RES
technologies through Information Campaigns and the National Energy Information
Centre (NIC).
•
Enhance EEA’s capacity to implement energy audits in industry and Certification of
Buildings under respective EU Directives with mobile equipment.
Program for promotion of energy saving technologies introduction in SME following energy
saving audits – 2006 The program envisages energy efficiency audits in SME qualified as large
energy consumers, which according to the requirements of the EE Act are subject to obligatory
energy efficiency audits. These audits should establish the optimal measures for reducing the
energy consumption per unit of production and increasing the enterprises competitiveness. This
objective reflects in full the priorities specified in the Operational Program "Enhancing the
Competitiveness of the Republic of Bulgarian Economy". At the end of 2006, under this project
the state budget provided grant funds for audits of 35v SME to the amount of 695 000 BGN.
Target program for energy efficiency in buildings – 2007 This program is a continuation of the
target program for energy efficiency in buildings 2006, which included state-owned and
municipal buildings, which are subject to obligatory certification as per Art.16 of the EE Act and
the Strategy for Financing Buildings Insulation for Energy Efficiency Improvement.
Energy Efficiency Agency’s ongoing projects and project proposals approved for 2006 are as
follows:
•
Concerted Actions Project – application of the requirements 2002/91/ec for the
energy characteristics of buildings;
•
Stable Project - ensuring the launching of the energy certification of buildings;
•
Ground Reach Project - application of thermal pumps for heating and cooling of
housing and industrial premises;
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•
EE Indicators Project - the macro-framework of the data, analysis and tendencies
concerning the EE on a national and sector scale.
•
4EM Project - energy efficiency of electric motors as primary industrial energy
consumers;
•
Promoscene Project - promoting the use of the structural funds and of the cohesion
fund for investment projects related to the rational energy use;
•
PPA Project - implementing at a local level the best European practices related to
energy efficiency projects completion.
2.5.4. Republic of Croatia
Energy Law, Article 12
(2) Energy efficiency programs shall be passed by the Republic of Croatian Government in
compliance with the Energy Strategy and the Program on the national level, and on the local
level by local or regional government or self-government bodies.
(3) The programs shall contain incentives for efficient energy use that will be implemented by
education, providing relevant information and advice to users and promotional activities
including publishing energy brochures.
(4) Energy undertakings shall provide customers with relevant information about trends and
characteristics of energy use at least once a year. They shall provide incentives and direct
customers toward efficient energy use and the use of potential savings.
(5) Energy customers shall be liable to use energy in compliance with the Rules on Efficient
Energy Use to be passed by the Minister.
(6) The Rules on Efficient Energy Use shall stipulate the classification of customers into several
categories: industry, noncommercial services sector, commercial sector, transportation, and
households; consumption of electricity shall be also categorized into several groups
according to the mode of consumption (energy required for plants, processing of electrolytes
and other processes, lighting, air-conditioning, heating and similar), types of consumption of
heat (warm water, hot water, steam, hot steam, hot oil, hot air and similar) in industrial
processing, for absorption cooling facilities, in food processing and other types of
consumption.
2.5.5. Republic of Georgia
EEC with ENSI, implemented many EE projects and achieved good saving.25
The Rural Energy Program is implemented by Winrock International, and is supported by the
U.S. Agency for International Development. The project is a four year effort that builds on the
success of the Republic of Georgia Energy Security Initiative. The project will:
•
25
Increase the supply of grid-connected and off-grid energy in rural areas
See EEC web site http://www.eecgeo.org
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•
Improve management of local energy production
•
Build in-country capacity in rural energy and alternative energy applications
•
Promote sustainability and use of natural resources
http://www.winrock.ge/index.php?article_id=25&clang=0
2.5.6. UNMIK
The draft Administrative Instruction on End-Use Energy Efficiency and Energy Services includes
Article 5 on the energy end-use efficiency in the public sector. It requests the public sector to
fulfill an exemplary role in achieving high end-use efficiency by using energy audits,
implementation of cost-efficient saving measures and purchasing energy efficient equipment by
introducing relevant tender evaluation criteria.
The KPEERES 2007-2009 includes project A 1 “House-in-Order Project”, which includes
elaboration of a public building inventory, an energy management software, implementation of a
pilot system for ten buildings, implementation of no- or low-cost saving measures and audit
reports.
The draft Administrative Instruction on End-Use Energy Efficiency and Energy Services includes
Article 5 on the energy end-use efficiency in the public sector. It requests the public sector
purchasing energy efficient equipment by introducing relevant tender evaluation criteria. It
requests also energy audits in objects wholly or partially financed from the public budget.
In Article 13.1 it stipulates that the Ministry for Energy and Mining shall review and update every
three years the UNMIK Program for Energy Efficiency and Renewable Energy Sources
(KPEERES). The first KPEERES for 2007-2009 was adopted in 2006
2.5.7. Former Yugoslav Republic of Macedonia
Development and start up of a utility-based Energy Service Company under the umbrella of the
transmission company. The ESCO will help to stimulate the market for energy services by
providing turnkey and performance-based contracting for energy efficiency, and by
demonstrating the financial performance of such projects using third-party financing for publiclyowned buildings.
2.5.8. Moldova
The Energy Strategy 2020 provides for:
i. orientation of personnel training policy towards the principles of market economy;
ii. raising public awareness on energy sector issues and on the importance of energy;
iii. ensuring a high professional level for trained engineering personnel, providing
qualifications for a smooth integration into both the Moldovan and the international labor
force.
iv. A network of regional educational and research centers will be set up, which will
cooperate in the dissemination of information on latest advances in the energy sector, as
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well as in the provision of education materials. These centers will also participate in
demonstration programs and projects on energy efficiency, use of RES and
environmentally friendly technologies. Within these centers there will be set up statistical
and informational data bases with energy sector information, equipped with Internet
access and providing free access to individuals and relevant legal entities. Funds for
support of these centers will be sought from international organizations as well as from
the State and regional budgets. Regional centers will be incorporated in the international
networks for monitoring environmental quality in the cross-border region Ukraine–
Republic of Moldova-Romania, with financial support from the European Union.
2.5.9. Republic of Montenegro
These activities are an issue of the EE Action plan for 2008, EE action plan fort Public Sector as
well as general EE Action plan up to 2012, which will be probably adopted by Government.
No schemes promoting EE on the municipal level are currently in place
2.5.10.
Romania
As noted above, authorities of local public administrations in localities with over 20,000 inhabitants
are obliged to develop their own programs to improve energy efficiency.
National Program for Reduction of Energy Bills for the Population through Improved Energy
Efficiency and Use of Renewables for year 2007 is a follow-up of the program 2006. Under the
Law on Budget 30 425 mln lei were allocated for non-reimbursable co-financing of investment
programs targeted towards rehabilitation and modernization of the district heating systems
(SACETs). The National Program 2007 secures up to 30% co-financing of investments in
rehabilitation and modernization of SACETs. The direct beneficiaries are the local authorities
from urban areas.
The Program shall help:
•
Reduce the heat bill of the population by 15%-25%;
•
Stimulate in 2007 an investment of over 400 mln lei at a local level;
•
Attract non-reimbursable financing, credits and PPPs;
•
Compensate the impact of the reduction of subsidies for heat and the impact of increasing
fuel prices on the population;
•
Develop the energy services and energy efficient equipment market in Romania;
•
Increase the number of financing institutions, including the international ones supporting
energy efficiency projects;
•
Increase the comfort and supply of heat and hot water and reduce the emissions in urban
areas.
•
ARCE is responsible for Program implementation; performs the technical analysis as to
determine the eligibility and select thereof.
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•
The Ministry of Economy and Finances is making the transfers to the local budgets of the
amounts allocated for this purpose.
•
The urban population connected to DHS is the indirect beneficiary of the Program.
National Energy Efficiency Action Plan 2007-2010 provides for the measures to improve energy
efficiency per category:
2.5.11.
•
Regulations
•
Information and legislative measures (information campaigns, energy audit)
•
Voluntary agreements and instruments for cooperation (e.g. long-term agreements)
•
Services to encourage energy savings (third party financing, energy performance
contracts)
•
Financial instruments (Subsidies, Tax breaks on construction permits for heat
insulation work on buildings, Co-financing of renovation work)
•
Mechanisms to encourage energy efficiency and other combinations of the
abovementioned sub-categories (Energy efficiency funds).
Republic of Serbia
•
In January 2007 Republic of Serbian government has been adopted Energy Sector
Development Strategy of the Republic of Serbia by 2015 Implementation Program for the
period 2007-2012 (POS 2007-2010) (15 parts including Energy Efficiency and RES).
•
Improvement of Energy Efficiency in public buildings through “Republic of Serbia Energy
Efficiency Project (SEEP)” financing by the World Bank credit and loan
•
Ministry of Science conducts National Energy Efficiency Programmed, around € 1 mil.
annually from state budget, basically focus on research aspect of issue
•
Improvement of Energy Efficiency in five District Heating Companies through
modernization – Grant of the EAR
•
Improvement of Energy Efficiency in six District Heating Companies through modernization
(KfW financing)
•
Improvement of Energy Efficiency through investment/demonstration projects (co-financing
50 % of the investments value with maximum 25,000 EUR)
•
Improvement of Energy Efficiency in a residential sector – credit from the National
Investment Plan (10 mil EUR)
•
Special program increasing EE and heat energy conservation by the installation of
calorimeters – beneficiaries are district heating companies (2,5 mil EUR)
•
Improvement of Energy Efficiency in industry and residential sector – credit from the
International financial corporation (IFC)
•
Preparation of the Sustainable Development Strategy is under progress (at the final stage).
One of the base of this Strategy is an improvement of the energy efficiency and wider use of
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RES.
1.1.11.1. The GtZ delegation from Eschborn Main Office visited the Standing Conference of
Towns and Municipalities on Wednesday 18 July 2007, with an aim of establishing
opportunities and conditions for launching a new energy efficiency project in Republic of
Serbia. Beside the Standing Conference, during their stay in Republic of Serbia, the
delegation also visited the Ministry of Mining and Energy, Energy Efficiency Agency and
other institutions relevant for the energy efficiency field.
The project aim at improving the legal framework in this area, as well as at enhancing
institutional capacity at central and local levels, enabling them to apply new legislation
efficiently. Also, the project is oriented towards enabling local self-government units for
strategic approach to energy policy as well as for preparation of energy efficiency-related
projects that can be submitted to various domestic and foreign financial institutions. The
project is expected to run for three years.
Standing Conference of Towns and Municipalities (SCTM), through its Committee for energy
efficiency, supported by the SEEA, realize different activities at the municipal level concerning to
the promotion of energy efficiency and RES (meetings, seminars, projects). In December 2007
SCTM and SEEA signed the Agreement of Understanding in a field of energy efficiency that
should result the common activities and projects at the Republic of Serbian municipalities.
Several regional associations (i.e. Chambers of Commerce, Associations of Engineers) are active in a
sense of organizing public meetings about energy efficiency issue.
1.1.11.2. It is planed to introduce energy managers in municipalities by the amendments to the
existing Energy Law or by the Law on Rational Use of Energy. There are several
municipalities that have established energy managers.
2.5.12.
Turkey
EE Law Article 6: c) The following activities shall be carried out to raise awareness of the general
public for efficient use of energy:
ƒ
Television and radio channels making national and/or regional broadcast shall broadcast
training programs, contests, short films and/or cartoons prepared or procured to prepare by
the General Directorate between 07.00 and 23.00 hours not to be less than thirty minutes in
total in a month under the awareness raising and information training programs pursuant to
Article 31 of the Law no.3984 dated 13.04.1994 on Establishment and Broadcast of Radios
and Televisions.
ƒ
Legal entities which sell electricity and/or natural gas under licenses shall offer the
information on their consumption quantities and the corresponding costs for the previous
fiscal year on a monthly basis to their customers in the Internet environment.
ƒ
Producers and importers shall include a separate section for efficient use of appliance in
terms of energy consumption in the user guide of appliances which must be sold
accompanied by a user guide in Turkish as determined and announced by the Ministry of
Industry and Commerce. The enforcement of this provision shall be supervised by the
Ministry of Industry and Commerce.
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ƒ
2.5.13.
The General Directorate shall organize an Energy Efficiency Week in the second week of
every January in cooperation with the Ministry of National Education, Turkish Scientific and
Technological Research Institution, Turkish Union of Chambers and Commodity Markets.
Activities in this context shall be identified by the Board.
Ukraine
Order of the President on the Measures to Reduce Energy Consumption by Budget Enterprises of
June 16, 1999, #662
Decree of the Cabinet of Ministers of Ukraine “On the Use of Budget Allocations for Performance of
Energy Efficiency Projects” of March 14, 2001 N 241
Order of the State Committee of Ukraine for Energy Conservation N78 of 15.09.99 “On
Approval of the Procedure for Organization and Conduction of Energy Expertise of Budget
Institutions, Organizations and Budget Enterprises”, registered in the Ministry of Justice of
Ukraine of December 15, 1999 N 871/4164.
Methodological recommendations on the development of regional, oblast and local programs of
energy conservation. - Regulating normative document У00013184 001-97, State Committee for
Energy Conservation, Kyiv. – 1997.
Decree of the Cabinet of Ministers of Ukraine “On Equipping Budget Facilities with Water and Heat
Metering Equipment” of February 4, 1999 N 139.
Decree of the Cabinet of Ministers of Ukraine
“On Some Measures on Energy and Fuel Savings” of July 7, 2000 N 1071.
Under an initiative of the State Committee for Energy Conservation, each regional administration
established a department for energy saving. These departments usually focus on:
•
Managing energy-efficiency activities at the regional and municipal levels by
establishing and coordinating the corresponding departments in municipal
administrations.
•
Monitoring energy consumption within the region.
•
Identifying the top priority energy-efficiency measures.
•
Comparing actual energy consumption with the established norms.
•
Ensuring realization of energy-saving programs at the regional and municipal
levels.
•
Providing information support for energy-efficiency activities.
•
Organizing training for local staff who deal with energy efficiency.
•
In accordance with methodological guidelines established by the State Committee
for Energy Conservation, almost all the regions of Ukraine have developed
comprehensive energy-conservation programs. The programs usually contain two
main sections. The first is data and analysis of the current situation and a forecast to
2010 of regional energy consumption with consideration of the energy-efficiency
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potential. The second is a list of energy-saving measures in all sectors, including the
budgetary sphere, as well as potential sources of funding.
•
2.6.
At the municipal level, energy-saving programs are less common. Some city
administrations do not have energy-saving departments at all. The lack of municipal
programs is compensated by regional programs that consider measures for
implementation in the cities.
Public information campaigns promoting EE
2.6.1. Republic of Albania
The Republic of Albania-EU Energy Efficiency Centre developed a public awareness campaign as
part of a USAID-funded project examining the feasibility of thermal insulation in Republic of
Albania’s residential market. The campaign included a brochure and public service
announcement (a TV spot).
2.6.2. Bosnia & Herzegovina
No public information campaigns.
1.1.12.
Republic of Bulgaria
Kids4future Project - model for energy efficiency education of primary school students;
BEHAVE Project - assessment of the qualities of and recommendations to all programs geared to
changing the end energy users' behavior
Energy Path Project - electronic model for energy efficiency education of secondary school
students;
The initiative on popularizing the energy efficiency measures found a natural continuation in the
establishment of the first public energy efficiency councils in the municipalities of Breznik and
Radomir. The public EE councils' structure comprises participation by representatives of
municipal, governmental and non-governmental organizations, as well as of local industrial
companies. The main priority in the public EE councils is dissemination of information and
popularization of the benefits resulting from energy saving and from introducing novel
technologies, as well as to examine the municipalities' capabilities to utilize the best practices in
the field of energy efficiency. Another priority is providing solutions concerning the funding of
projects in this field.
For information: http://www.seea.government.bg/
2.6.3. Republic of Croatia
KUENzgrada (Energy efficiency in building construction)
The basic goal of energy efficiency within the program KUENzgrada is the reduction of energy
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needs during design, construction and utilization of buildings and settlements, and during the
restoration of the existing buildings as well as the creation of suitable microclimatic parameters in
areas around the buildings with the decrease of environmental impact. This program includes the
changes of existing legislation, building physics, energy audits in buildings, passive solar
architecture, renewable energy sources in buildings, promotion of energy efficiency and pilot
projects.
MIEE (Industrial energy efficiency network)
Within the MIEE program, consumers in industry and service sectors, as well as in the public
sector are encouraged to increase energy efficiency through an organized structure. The direct
communication between large energy consumers, energy producers, expert and consulting bodies,
and government institutions has to be enforced. It is also important to involve the consumers in
the industry, commercial and public sector as well as to involve the designers in informing
campaigns and training programs and in decision making. The Cooperation between scientific
and expert institutions from diverse sectors on energy issues and the cooperation with similar
institutions and energy programs have to be enlarged.
KOGEN (Cogeneration program)
In cogeneration (KOGEN) the main goal is to promote construction and utilization of
cogeneration plants in all buildings where they are technologically and economically justified.
The realization of this program includes the establishment of a legislative, financial and
technological framework for cogeneration plant construction.
KUENcts (Centralized thermal systems’ energy efficiency program)
For centralized thermal systems (KUENcts) in Republic of Croatia it is necessary to encourage
development and enhancement of centralized thermal systems in areas with a large density of heat
consumers or combined electric energy and heat consumers. It is also important to enhance
efficiency of the existing systems. Progress can be seen in:
•
Preparation of a legislative framework for the heat sector and heat tariff development
•
Preparation of the Handbook of energy management in CTS (DH/CHP, HOB)
•
Realization of existing pilot projects and establishment of new ones
•
Least-cost energy planning for DH systems
•
Promotion, education and capacity building
TRANCRO (Transport energy program).
Energy efficiency in the transportation sector is tried to be increased through different
measurements:
•
"Cost - benefit analysis" of various measures (projects) for sustainable transport system
development
•
Necessary legislation - measures – subsidies
•
Action plan - for Republic of Croatian Government
•
Pilot projects and marketing
CROTOK (Republic of Croatian Islands energy program)
CROTOK can be seen as the synthesis of all national energy programs and is based on the
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methodology for regional energy planning in Republic of Croatia . Important aspects are the
institutional, organizational and expert prerequisites for developing energy system on islands.
BIOEN (Biomass and waste energy use program)
According to the National Energy Sector Development Strategy, the project has shown, that
electric energy generation from biomass and waste could meet up to 15 percent of the total
primary energy consumption until 2020, which is a realistic assumption when compared to
Austria, Finland and Denmark.
BIOEN program includes sub-program BIODIZEL, the goal of which is to develop steady
biodiesel production and to spread use of biodiesel in Republic of Croatian transport and energy
sector.
SUNEN (Solar energy use program)
The program for solar energy use SUNEN has shown that solar energy utilization combined with
LPG and/or natural gas is a technologically and ecologically acceptable solution for the Republic
of Croatian coastline. The hybrid combination of solar energy, wind energy and LPG can help
solve the problem of energy infrastructure on islands and also start the development of traditional
island activities with the engagement of local resources in accordance with the strategic
development of Republic of Croatian islands.
2.6.4. Republic of Georgia
Not available
2.6.5. UNMIK
The KPEERES 2007-2009 includes several projects for public information campaigns:
•
E1 Campaign for Energy Efficiency: large-scale campaign with posters and television
advertising, internet website etc.
•
E2 Energy efficiency course for the University
•
E3 Energy efficiency in the school curriculum
•
Furthermore, the following activities were implemented or planned:
•
School competition for poster on energy efficiency
•
Workshop for eligible electricity customers on secondary effects of market
liberalization
2.6.6. Former Yugoslav Republic of Macedonia
There are EE awareness rising campaigns only in residential sector.
2.6.7. Moldova
MUNEE program in Moldova funded by USAID and implemented by Alliance to Save Energy has
continuously worked to increase the public awareness about benefits of energy efficiency.
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Examples of Alliance’s awareness campaign include:
Broadcasted public advertisements on energy efficiency measures on two TV channels for over
two months, gave numerous interviews that addressed the objectives of Heat Sector Reform and
discussed the concepts of MUNEE.
Organized traditional monthly roundtables for energy market stakeholders that opened a dialogue
between suppliers, consumers, decision-makers, donors, and media on hot energy efficiency
topics. The goal of the events was to communicate the existing problems and jointly seek
solutions.
Drafted, published and distributed 1,000 energy efficiency advice booklets for condominium
residents. The booklets consisted of energy-saving tips for use around the kitchen, household
appliances, and other household energy hot spots. A similar booklet was published for managers
of condominiums and public buildings addressing general energy-saving measures for buildings.
Organized training courses on Energy Planning and Management for 10 municipalities. As a result,
one of the municipalities developed an energy project and a business plan for decentralizing the
heating system in the city.
Organized study tours to Poland, Czech Republic and Lithuania and follow-up workshops for
senior government representatives, municipalities, and energy experts.
Published numerous articles in national publications to elucidate the importance of energy
efficiency
Energy Efficiency Improvement Projects in Municipalities: distribution of weatherization
materials to 15 schools and 2 hospitals.
CPEE - the Moldavian Cleaner Production and Energy Efficiency Centre
•
Combined capacity building and project development program on Environmental
Management Systems in the Republic of Moldova
•
Combined capacity building and project development Program on Cleaner
Production and Energy Efficiency in Chisinau, the Republic of Moldova
Moldova Weatherization Project - U.S. Agency for International Development (USAID) - the
objective of this project has been the selection of weatherization sites in Moldova, perform the
weatherization activities using local energy service companies (ESCOs), provide local ESCO
training in weatherization and energy efficiency techniques and conduct the assessment of energy
savings
2.6.8. Republic of Montenegro
None to date. After adaptation of EE Action plan, it is planned that will be announced "EE Year"
in Montenegro, which will be followed with a lot of promoting activities in different sectors.
Under the World Bank project "EE in public buildings" it is planed public campaign for 20082010.
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2.6.9. Romania
Public information campaigns conducted by ARCE are ongoing.
In 2006 the Central and Eastern European Countries Appliance Policy (CEECAP) project on
Implementing EU Appliance Policy in Central and Eastern Europe was launched to support
Europe’s economies in transition in creating suitable conditions for implementing appliance
labeling and efficiency policies in accordance with EU appliance efficiency legislation and
programs. Romania is part of this project and has attained the following results:
•
Created the Contact Team at the national level (May 2006);
•
Training for government authorities, state inspectorates, etc.;
•
Training for electrical appliances producers;
•
Workshop for national experts and government institutions concerning energyefficiency labeling of electrical appliances (Bucharest, October 24, 2006);
Workshop for electrical appliances producers, importers and sellers (Bucharest, October 24, 2006).
The key project’s activities are the identification of the leading national experts and decision
makers, their training, design and preparation of national appliance labeling and efficiency
actions, set-up of a national multi-disciplinary committee as a forum for discussion about best
practices, cooperation opportunities and knowledge transfer.
2.6.10.
Republic of Serbia
Within the Special Fund budget provided within the EAR grant, SEEA have been prepared and
conducted a comprehensive information strategy aimed to promoting energy efficiency.
In the course of development of the SEEA Communication Strategy the following activities were
performed:
•
Quantitative and quality research into information needs of the citizens were carried out
from March to April 2005 and reports were produced
•
Questionnaires for municipalities covering energy planning, energy management,
district heating, street lighting and water supply for all municipalities and 200
questionnaires were filled. Research into information needs in the industry was
launched in October in cooperation with Chamber of Commerce
•
Creative strategy for buildings programmed was completed in June 2005.
Information and dissemination strategy for buildings programmed was finished October 2005
2.6.11.
Turkey
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2.6.12.
Ukraine
The State Committee for Energy Conservation had a well-developed outreach program with training,
seminars and information on energy efficiency for industrial managers and workers. The outreach
program played a crucial role in promoting EE in the industrial sector of Ukraine. It is likely to
continue under the Agency on Efficient Energy Use.
Regional departments play a crucial role in raising public awareness of energy efficiency, providing
information support for local enterprises and budget organizations as well as training the local
energy managers. Some regions have a well-developed system of education centers that raise the
level of energy-efficiency skills. For example, since 2003, the Rivne regional administration has
held one-day training courses on energy efficiency, which are open to all civil servants and to
directors of budget organizations or state-owned companies. In addition, Rivne Region schools
and colleges teach a new course called the "Basics of Energy Efficiency".
Each region hosts a number of energy-related exhibitions that promote energy efficiency and
renewable energy. Most regions organize a special event every year called "Energy-efficiency
Week" during which efficiency principles are disseminated through the press and TV. During the
Rivne Region's 2004 Energy-efficiency Week, about 24 TV programs, 210 radio speeches and
322 newspaper articles were devoted to energy-efficiency issues in the region. Two consulting
centers and two magazines provide ongoing informational support on energy efficiency. Nongovernmental organizations also play a role in disseminating energy-saving measures. Local
NGOs (the Eco-club and the Rivne Media Club) promote energy-efficient behavior and practical
measures to improve energy efficiency such as weatherization and metering.
Many energy-efficiency initiatives developed at the municipal level are implemented by NGOs or
private firms, often with international support. An example is the Lviv Boarding School Pilot
Project, undertaken by the Alliance to Save Energy
3. Institutions and Authorities
3.1.
Government Institutions26
Republic of Albania
Ministry of Economy, Trade and Energy (METE) – METE is responsible for the entire energy
sector (incl. oil, gas, electricity and renewable energy resources). Its principle task is to push for
progress on energy sector reforms while opening the market for private investors and adapting
Republic of Albania’s energy sector to satisfy European directives. The METE is one of the main
institutions in a position to make policies that support energy efficiency.
Republic of Albanian National Agency of Natural Resources (AKBN) – AKBN is a newer
institution that has replaced the former National Agency of Energy. The METE proposed the
downsizing (from 25 to 6 staff) and merger of the National Agency of Energy into the AKBN,
and the proposal was officially accepted with the Government Decision issued on 11 April 2007.
The AKBN has assumed the National Agency of Energy’s former responsibilities to serve as an
26
The contact information about the key agencies is presented separately in ANNEX II.
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advisory institution on energy policy, and to prepare technical and economic studies about the
Republic of Albanian energy sector.
Republic of Albanian Electricity Regulatory Authority (ERE) – The ERE is responsible for
regulation of Republic of Albania’s electricity sector. The ERE monitors the function and
performance of the electricity market according to Article 23 of the EU Directive 2003/54/EC.
This institution does not have any specialization in energy efficiency, but can be a resource on
trends in electricity pricing.
Ministry of Labor and Social Welfare – although it has no specialization in energy efficiency, the
Ministry might be in a position to support (financially and/or politically) energy-efficiency
projects and programs focused on vulnerable populations.
3.1.1. Bosnia & Herzegovina
No Energy Agency on any level
No EE Agency on state level or any other level
3.1.2. Republic of Bulgaria
The Ministry of Economy and Energy incorporated by decision of the Republic of Bulgarian
Parliament in August 2005 through the merger of the Ministries of Economy and Ministry of
Energy and Energy Resources.
Energy Efficiency Agency (EEA) is a juridical person, supported by the budget with headquarters in
Sofia and has a statute of an executive agency to the Minister of economy and energy.
http://www.seea.government.bg/index_en.php
State Energy Regulatory Commission implements the State Regulation in the Energy Sector. The
State Energy Regulatory Commission performs the actions needed for granting of permits and
licenses. Also, it approves the General Conditions of Power, Heat and Natural Gas Sell
Agreements that are proposed by the Energy Companies and approves the prices formed by the
Energy Companies. The Commission monitors all permits and licenses granted to the Companies
within the Power Sector. Concerning competitiveness and the internal energy market, SERC is
responsible for developing and implementing a tariff and price-setting methodology for
electricity, gas and heating, and for approval of tariff proposals submitted by companies in the
energy sector.
The Ministry of Regional Development and Public Works has the main responsibility for the
development of the regions in Republic of Bulgaria. It has created the program Residential
Energy Efficiency Credit Line - in 2005 and coordinates all activities linked with the program.
http://www.mrrb.government.bg/indexen.php
3.1.3. Republic of Croatia
Ministry of Economy, Labor and Entrepreneurship
Republic of Croatian Energy Regulatory Agency (CERA) is independent in undertaking all
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organizational and other measures for performing its function and fulfilling its obligations
according to the Act on the Regulation of Energy Activities, The Energy Act and other legislation
regulating particular energy activities. CERA performs activities of special interest for the
Republic of Republic of Croatia, based on public authority.
Regulation of energy activities promotes the following:
•
Efficient and rational use of energy
•
Entrepreneurship in the energy sector
•
Investments in the energy sector
•
Use of renewable energy sources
•
Protection of environment.
Koturaška 51, 10000 Zagreb
Act on Amendments to the Energy Act, Art.7 “(3) To encourage energy efficiency and development
of renewable sources, the Government of the Republic of Republic of Croatia may, by ordinance,
establish an agency for energy efficiency and renewable sources.”
3.1.4. Republic of Georgia
Republic of Georgian National Energy Regulatory Commission
http://www.gnerc.org/
Ministry of Energy
http://www.minenergy.gov.ge/
3.1.5. UNMIK
In 2003, a study was finalized which was financed by EAR on the implementation of the Energy
Efficiency Program in UNMIK. It proposed the establishment of a UNMIK Energy Efficiency
Agency KEEA. However, the implementation of KEEA was rejected by the Assembly of
UNMIK.
The Ministry for Energy and Mining was established in 2005. The Law on Energy No. 2004/8
stipulates: The Ministry responsible for Energy shall perform the following tasks related to the
implementation of an energy efficiency policy:
•
prepare implementation programs to promote the efficient use of energy and renewable
energy resources;
•
prepare proposals for incentives for the efficient use of energy and renewable energy
sources;
•
monitor energy efficiency and the realization of potential savings;
•
provide information to the public regarding energy efficiency issues;
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•
encourage energy audits and local energy saving development plans;
•
prepare secondary legislation, after consulting the Energy Regulatory Office, for which
promote the efficient use of energy and use of renewable energy sources;
•
encourage the operation of non-governmental organizations acting in the public interest
in the energy sector; and
•
promote an increase in the contribution of renewable energy sources to electricity
production in the internal market and regional markets for electricity in conformity with
the indicative targets to be established in Article 12 of this Law.
Ministry for Energy and Mining together with the Ministry for Local Government developed a draft
Administrative Instruction on the establishment of Energy Efficiency Offices at municipal level,
to take care of energy efficiency, renewable energy sources and energy planning.
3.1.6. Former Yugoslav Republic of Macedonia
State Energy Agency is responsible for professional technical support on data management, strategy
analysis, policy and project assessment and implementation coordination. The activities of the
Agency are aimed towards:
•
preparation of mid-term and long-term strategies and development plans;
•
preparation and coordination of the energy reforms;
•
proposal and evaluation of studies and projects on the energy sectors, energy efficiency
and renewable energy sources;
•
preparation and coordination of the implementation of investment projects;
•
regional cooperation and coordination of regional projects, and other activities.
The Ministry of Economy is in charge of strategic planning and legislation development
(http://www.economy.gov.mk/). One of the bodies of the Ministry of Economy is the Sector for
Energy and Energy Efficiency. Its main obligations are:
•
to conduct energy policy of the state through the programs, measures and other
activities,
•
to create and develop laws, sub-laws, and other legal documents on energy,
•
to initiate, join and implement the policy for energy sector restructuring,
•
to create and develop concession acts, licenses, approvals and agreements for any
energy activity and exploitation,
•
to establish tariff system and other acts as the regulator of the energy prices
The Energy Regulatory Commission was established in June 2003 (Energy Law)
http://www.erc.org.mk/ . Its 5 Commissioners were nominated by the Parliament Assembly in
July 2003. It is engaged in:
•
Establishment of tariff systems and prices
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•
Authorization procedures (licenses for generation, distribution, supply and eventually
other services within the energy industry)
•
Development / verification of Grid Codes and Market Codes
•
Dispute settlement and customer protection.
Ministry of Environment and Physical Planning Article 122-a of the Law on Amendment and
Supplementing the Law on Public Administration Bodies defines the following competencies of
the Ministry of Environment http://www.moe.gov.mk/ :
•
monitoring of the state of the environment
•
proposing of measures and activities aimed at water resources, air and ozone layer
protection, protection against noise, radiation, conservation of biological diversity,
•
development of self-financing system from independent sources, types and levels of
environmental charges and other payments;
•
cooperation with civil associations, civil initiatives and other forms of civic activity
3.1.7. Moldova
The Ministry of Industry and Infrastructure. This Ministry of Industry and Infrastructure
supervises the energy sector. It is also in charge of the heat supply for households.
The Ministry of Ecology and Natural Resources deals with the climate change issues.
The National Agency for Energy Efficiency, created in 1994. The Agency is undergoing the
restructuring since December 200627. In July 2007, the Agency was renamed into Agency for
Energy Efficiency in Law on Renewables. At the moment, the Law on Energy Conservation is
being modified to comply with the Law on Renewables and assign new tasks and powers to the
AEE.
Institute of Energy of the Academy of Sciences of Moldova carries out research in such fields as
electric energy, renewable energy sources, small wind farms, solar energy installations and heat
storage. The Energy Institute has also established a Research Laboratory for non-conventional
sources of energy. Target audience is non-profit organizations, building industry, agriculture and
small enterprises. It also advises the government on specific energy issues, provides energy
auditing and is involved in promotion of energy efficiency in buildings.
The Commission for EE and RES, an inter-ministerial entity was established to promote EE and
RES. The Commission is presided by the President of the Academy of Science, includes
representatives from the key ministries such as Economy, Industry, Agriculture, Environment and
promotes EE and RES projects in Moldova.
National Energy Regulatory Agency (ANRE) was established in 1997 to both regulate electricity,
natural gas, and district heating sub-sectors and to promote competition in the energy markets. It
oversees the application of the energy tariffs, and its Tariff Calculation Methodology (TCM) was
adopted in June 1999, using a cost-plus system. The agency’s responsibilities include: licensing,
tariff setting, establishing quality of service standards, consumer protection and promotion of
27
Government Decision of the Republic of Moldova No. 1452 of December 21, 2006.
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competition and energy efficiency.
3.1.8. Republic of Montenegro
The EE Strategy provided, among others, creation of the Montenegrin Energy Efficiency Unit
(MEEU) under the Ministry for Economic Development of Montenegro to be in charge of EE and
RES promotion on national level.
MEEU was established within the Ministry for Economic Development as an informal unit and
staffed with 2 persons. In addition the Energy Efficiency Council for implementation of the EE
Strategy was established.
Energy Efficiency Action Plans for 2006 and 2007 (for EE Strategy implementation) were
adopted by the Government. MEEU is responsible for implementation of this Action Plans.
Annual MEEU budget (for operation and annual Action plans implementation) is 50 000 €.
Establishment of Montenegrin Agency for EE and RES is ongoing project (preparation 2008,
establishment 2008).
3.1.9. Romania
The institutional framework for the promotion of measures to encourage the efficient use of energy
was created in 1990 with the founding of the Romanian Agency for Energy Conservation
(ARCE). The powers of this agency were strengthened in 2000 with the adoption of Law
199/2000 regarding the efficient use of energy, this law being amended and supplemented by Law
56/2006. Legally, the Romanian Agency for Energy Conservation is considered to be the main
specialized body, at the national level, in the field of energy efficiency. It is subordinate to the
Ministry of Finance. Other institutions and ministries involved in the field of energy efficiency
are as follows:
•
Ministry of Finance implements government policy in the energy sector, including in
the areas of energy efficiency and renewable resources.
•
Ministry of Development, Public Works and Housing, for the housing sector.
•
Ministry of the Environment and Sustainable Development (MMDD).
•
Ministry of the Interior and Administrative Reform (MIRA), for local government.
•
Ministry of Transport (MT), for the transport sector.
•
Furthermore, the National Energy Observer (OEN) was founded in 2003, its mission
being to compile data and to determine the main indicators of energy efficiency in
Romania. Also in 2003, the Romanian Fund for Energy Efficiency was established to
provide financial assistance, on commercial conditions, to companies in the industrial
sector and other energy consumers in order to enable them to implement projects for
the efficient use of energy.
Ministry of Economy and Commerce (MEC) (Government Decision no. 738/2003) is responsible,
inter alia, for drawing up the national energy strategy for the energy sector’s evolution, such as
power and thermal energy, hydroelectric and nuclear power, oil, natural gas, mineral resources,
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etc.
Romanian Agency for Energy Conservation (ARCE) is in charge of promoting energy efficiency
at the national level. Responsibilities include energy efficiency policy making and program
implementation. ARCE (according to the Government Decision No. 941/2002 establishing its
structure and function) has a legal personality. Its functioning, operational and financial activities
fall under the direction of the Ministry of Economy and Commerce. ARCE is financed from extra
budgetary funds and allocation of funds from the state budget. ARCE has 8 regional offices (in
Bucharest, Brasov, Cluj, Constanta, Galati, Iasi Suceava and Timisoara).
National Electricity and Heat Regulatory Agency (ANRE), established according to the Law
No.99/2000, is organized as an independent public legal person of national interest under
coordination of the Prime Minister. ANRE operates as its own organization and regulations it
prepares are approved through government decisions. Its mission is to create and implement fair
and independent regulations to ensure an efficient, transparent and stable functioning of the
electricity and heat sector and market while protecting the interests of consumers and investors.
ANRE issues, sets up and monitors mandatory regulations to be implemented at the national level
with a view to ensuring the proper functioning of the electricity sector and market in terms of
efficiency, competition, transparency and consumer protection. ANRE is entirely financed from
funds outside the budget through fees obtained for licenses, authorizations and other regulatory
activities levied upon the regulated companies and through funds provided by international
organizations, as per the legal provisions on public finances.
Green Certificates Market Operator (OPCOM) is a legal person which assures Green Certificates
trading and determines the prices on the Centralized Green Certificates Market, performing the
functions established by the regulation for organizing and functioning of the Green Certificates
Market (Order No. 15 / 2005 issued by ANRE).
National Regulatory Authority in Natural Gas Sector (ANRGN) (Government Ordinance No.
41/2000 approved by Law No. 791/2001) is a public institution and legal person that develops,
applies and monitors the regulation system necessary for the natural gas sector and market
regarding its efficiency, safety, competition, transparency and protection of consumers and the
environment p.
The financing of ANRGN, which comes entirely from extra budget funds obtained from fees for
granting authorizations and licenses, has permitted ANRGN to develop its activities according to
its own organizational rules.
Romania's National Agency for Mineral Resources (NAMR) was established in 1993 as the
regulatory authority to administer the mineral resources of Romania and is under the authority of
the government. After the establishment of this specialized authority for the gas sector (ANRGN),
the competencies of the National Agency for Mineral Resources (NAMR) concerning gas were
limited to the concession of exploitation blocks. NAMR, in co-operation with ANRGN, sets up
the transmission tariffs for natural gas.
NAMR is a competent authority which coordinates the mining operations under Petroleum and
Mining Laws.
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NAMR has the following responsibilities:
•
to administrate and survey the Romanian mineral resources, the national geologic fund,
all national property;
•
to compute, register and update all mineral resources of Romania in the Mining Book
and Petroleum Book;
•
to negotiate the terms and conclude agreements for the exploration and production of
the mineral resources;
•
to regulate the activities and operations on the basis of these or of any other
agreements;
•
to establish legal taxes, royalties and prices for prospective exploration and production
activities, as well as pipeline transport tariffs for hydrocarbons;
•
to issue compulsory regulations and instructions for the mineral resources sector.
Ministry of Agriculture, Forests, Water and Environment (MAPAM) is responsible for the
development of the general environmental policy and specific legislation related to water
management and environmental protection. It is also the Implementing Authority for the projects
financed through the ISPA28 – Environmental Program. Responsibility for the implementation of
the environmental policy at the local level lies with the local authorities.
Due to increased decentralization, the 42 county-level Environmental Protection Agencies
became more responsible for monitoring environmental indicators and are authorized to issue
environmental permits and licenses.
In order to improve central and local inspection effectiveness, the Environmental Guard was set
up. It is an environmental control body with legal personality, financed from the state budget and
operating under the authority of the MAPAM.
Inter-ministerial Committee for the coordination of environmental policy integration into sectoral
policies and strategies at the national level was set up with the aim of developing a uniform
environmental policy. Its members are representatives of all ministries who analyze and approve
all environmental policies, strategies and legislation, having an important role in promoting and
updating the National Environmental Action Plan and assessing the progress of the National
Program for the Adoption of the acquis.
In order to adopt the EU institutional structures, two objectives have been set, namely the
establishment of 8 Regional Agencies for Environmental Protection and of the National Agency
for Environmental Protection.
•
Ministry of Economy and Finances (MEF) applies the Government policy in the power
sector, including the energy efficiency and RES sectors,
•
Ministry of Development, Public Works and Housing (MDLPL), for buildings,
28
ISPA stands for “Instrument for Structural Policies for Pre-Accession” and is a financial instrument that became available in 1999 to
help the economies in transition in Central and Eastern Europe invest in the environment and more sustainable transport.
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3.1.10.
•
Ministry of Environment and Sustainable Development (MMDD),
•
Ministry of Interior and Administrative Reform (MIRA), for local administration,
•
Ministry of Transport (MT), for the transport sector
•
Romanian Electricity Authority (RENEL)
Republic of Serbia
Ministry of Mining and Energy (MoME) has jurisdiction over the electricity, energy, geology and
mining, oil and gas sectors. It is responsible for Governmental energy policy making, preparation
and adoption of energy legislation, secondary legislation and regulation.
The Republic of Serbian Energy Efficiency Agency (SEEA) started operation in 2002 and is
responsible for the development of programs and measures aimed at improving energy efficiency
and energy saving and also for the promotion of renewable energy sources. Work of the SEEA is
supported by five Regional Energy Efficiency Centers (REEC) which are independent units at
Republic of Serbian universities, and by Republic of Serbian Industrial Energy Efficiency
Network (SIEEN). Their tasks are development of energy efficiency projects, transfer of
innovative technologies, consulting and advisory services to industry and households as well as
organization of education and trainings. Within its scope of operation SEEA implemented and
managed pilot projects in energy efficiency and RES, development of feasibility studies, training
programs in industry and municipalities, preparing of the conferences and campaigns for raising
awareness of energy efficiency and preparation of the legislation. Pilot projects were mainly
funded by international donors and creditors, especially the EAR and the World Bank. SEEA has
11 employees.
The National Energy Agency (EARS) was established in 2005 as regulatory authority with its main
tasks being energy market development, monitoring the implementation of regulations and
harmonization activities of energy entities in providing regular supply of energy and services to
customers. The EARS is also responsible for defining the tariff system, which has to be approved
by the Government. So far EARS has issued energy licenses for most of the entities in the gas and
electricity sector and developed the framing conditions for the tariff systems and the methods for
determining the costs of connection to the energy transmission, transportation and distribution
system.
The Provincial Secretariat for Energy and Mineral Resources of Vojvodina Province was established
in the beginning of 2002, after the adoption of the Law on Establishing Specific Competences of
the Autonomous Province - “The Omnibus Law” (No 6/2002 , “Official Gazette of the Republic
of Republic of Serbia”) and it comprises two departments: Section for Energy and Section for
Mineral Resources. The Secretariat has 27 employees, 9 out of which are employed in the Section
for Mineral Resources.
In accordance with the above mentioned Law, the Secretariat performs delegated tasks in the field of
mining and energy. Apart from activities of the public administration, the Secretariat, among the
rest, also performs tasks pertaining to: research, development and application of all types of
primary and secondary energy; research and development programs in the field of research,
exploitation and utilization of coal, oil, gas, geothermal and mineral waters; increase of energy
efficiency of facilities and energy saving, research and application of alternative energy sources
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and secondary raw materials which are important for development of the Province, collection of
new technologies, patents and licenses for the purpose of possible introduction of new products in
production, on the basis of raw materials which are important for the Province, current policy of
energy industry development and performance of energy systems, development of basic
geological surveys, monitoring production and consumption of all types of energy and mineral
resources, creation of energy balances and balances of resources and reserves of mineral
resources in the Province.
3.1.11.
Turkey
The Energy Conservation Coordination Board (ECCB). According to the EE Law, Art. 4 – (1) An
Energy Efficiency Coordination Board shall be established to carry out energy efficiency studies
within all relevant organizations all over the country, monitor its results and coordinate efforts.
(3) The Board shall have the following functions, authorities and responsibilities:
•
Prepare national energy efficiency strategies, plans and programs, assess their
effectiveness, coordinate their revision as necessary, taking and implementing new
measures.
•
Steer energy efficiency studies carried out by the General Directorate, approve the
authorization certificates issued by General Directorate to chambers of profession and
universities in promoting energy efficiency services.
•
Approve the implementation projects prepared, or procured through the companies, by
the industrial establishments which wish to benefit the practice under subparagraph (a)
of the first paragraph of Article 8 and subparagraph (a) of the first paragraph of Article
9 and voluntary agreements under subparagraph (b) of the first paragraph of Article 8,
and monitor results of the implementation.
•
Establish ad hoc specialty commissions by the participation from the relevant public
agencies and institutions, universities, private sector and civil society organizations,
with expenses covered from the General Directorate's budget, under the functions
assigned to the Board and where it deems necessary.
•
Set the agenda of, and identify the participants in, the advisory committee meetings
organized by the General Directorate every November by the participation of
authorized institutions, companies, chambers of profession in the nature of public
institutions and civil society organizations, and approve proposals for measures.
•
Set and publish the fees for authorization certificates and energy manager certificates
every January.
The General Directorate of Electrical Power Resources Survey and Development
Administration (EIE), according to the EE Law:
•
Make measurements relating to assessing all energy sources with priority for hydraulic,
wind, geothermal, solar, biomass and other renewable energy sources, prepare
feasibility studies and exemplary implementation projects, develop pilot systems in
cooperation with research organizations, local governments and civil society
organizations, carry out promotion and consulting activities.
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•
Provide awareness raising and training services relating to rational use of energy in
industry and buildings, authorize and inspect universities, chambers of profession and
legal persons to provide the same services, conduct the secretariat services for the
Energy Efficiency Coordination Board.
•
Monitor, evaluate works made by the relevant ministries and bodies, develop measures
and/or project proposals for effective and efficient use of energy in transport, electric
energy generation plants, transmission and distribution systems.
•
Monitor and inspect the energy efficiency implementation projects and research and
development projects approved by the Energy Efficiency Coordination Board.
•
Monitor and evaluate the occurrence of harmful waste and emissions of interest to the
environment from the energy consumption points, prepare projections and proposals for
measures.
•
Follow and evaluate works and developments on energy in the country and the world,
set research and development goals and priorities for the needs and conditions of the
country, conduct and procure to conduct research and development studies in this
direction, disclose to the public the studies with economic analyses.
•
Ensure that all stakeholders of energy access accurate and updated information, make
and update a national energy inventory, establish and operate a national energy
information management center to support the planning, projection, monitoring and
evaluation works.
•
Develop projections and proposals to utilize domestic and renewable energy sources
and increase energy efficiency.
•
Make activities to raise energy awareness and utilize new energy technologies in the
general public.
•
Make coordination between public agencies and institutions, universities, private sector
and civil society organizations for effective and efficient cooperation on energy
efficiency.
•
Make activities to inform and raise awareness of the general public on energy related
matters.
•
Cooperate and exchange information with national and international organizations in
other countries.
•
Form opinions, under the regulation to be issued by the Ministry, for the applications to
obtain licenses for wind energy according to the Electric Market Law no.4628 dated
20.02.2001 and the Electric Market License Regulation issued based on this Law.
Ministry of Energy and Natural Resources (MENR) according to the EE Law, art. 11,
Ensure, through the Board, the coordination of the enforcement, directing, monitoring, evaluation
of obligations under this Law, planning and implementing of the measures to be taken.
Reduce to half or increase up to twice the numerical threshold values defined for the appointment
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of an energy manager or the establishment of an energy management unit under the subparagraph
(a) of the first paragraph of Article 7.
Reduce to half or increase up to twice the project cost and subsidies provided to projects under
the item (1) of the subparagraph (a) of the first paragraph of Article 8, and reduce to half or
increase up to twice the energy intensity reduction rate and subsidy amount indicated in the item
(1) of the subparagraph (b) of the first paragraph of Article.
3.1.12.
Ukraine
National Agency for Efficient Use of Energy created by President Decree in 2005 and active as of
spring 2006. As a government body with a special status is charged with:
•
Carrying out state policy in the area of energy consumption and energy conservation
•
Securing an increase in the share of non-traditional and renewable energy production
•
Establishing a state system to monitor energy production, consumption, exports and
imports; improving the system of registering and controlling energy consumption
•
Ensuring the functionality of the system of industrial energy consumption norms;
State Inspectorate for Energy Conservation (established in 1999):
•
Oversees compliance with energy efficiency regulations and standards
•
Establishes norms for energy use in industry according to product type, and then
monitors and manufactures compliance with these norms;
•
Conducts technical analyses and monitors compliance with building energy codes;
The Ministry of Construction, Architecture, Housing and Communal Services is active on EE
issues in district heating and buildings
Institute for Energy
Institute for Energy Saving and Energy Management (The National Technical University)
Institute for Technical Heat Physics
KyevZNIIEP
Gaz Institute
The International Centre of Energy Efficient Technologies (ICEET) is a state enterprise created
in 1997 with the goal to fulfill the work and provide services for improving efficiency of energy
resources utilization on the basis of prominent foreign and local technologies and creation of
economic and organizational - technical conditions for their wide spreading in Ukraine.
UkrESCO is a company established to implement energy saving investment projects in Ukraine.
UkrESCO implements projects that are funded by the proceeds of a loan made available by the
European Bank for Reconstruction and Development (EBRD) with the support of the European
Commission (EC). The implementation of energy saving projects at Ukrainian entities shall
contribute to reducing energy consumption at the enterprises of Ukraine. In the CIS, UkrESCO is
the first energy saving service company that performs combined financing and turn-key energy
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saving contracts.
EE agency for energy-saving state extra-budgetary fund.
Financial sources are the following: municipal budgets, the World Bank, SIDA, EBRD
3.2.
Non-governmental Institutions
•
Municipal or mayors’ associations that focus on energy use, heat delivery, and energy
efficiency.
•
NGO energy efficiency centers and environmental groups that focus on energy
efficiency.
•
Business and industry associations focusing on providing energy efficiency equipment
and/or services and promoting policies in this area.
•
Energy consumers’ organizations and other bodies interested in promoting energy
efficiency.
3.2.1. Republic of Albania
1.1.12.1. Republic of Albania-EU Energy Efficiency Centre (EEC) – The EEC is the only
specialized institution in Republic of Albanian that works on energy efficiency. It has
become a self-financing organization by providing services to various Republic of Albanian
institutions and foreign donors in the fields of energy efficiency, rational use of energy,
renewable energies, and through its involvement in various programs supported by the
Republic of Albanian government and donor institutions (e.g. European Commission,
USAID, etc.) It is the leading organization in Republic of Albania for initiating and
implementing energy-efficiency projects and programs. http://www.eec.org.al/
1.1.12.2. Republic of Albanian Association of Municipalities (AAM) – The headquarters of the
AAM is located in Tirana. The AAM has professional staff and long-term experience in
networking, developing projects, lobbying political interests of local governments in Republic
of Albania. The AAM has been part of the EU’s “BISE” network. More information is
available at http://www.aam-al.org.
3.2.2. Bosnia & Herzegovina
Municipal Energy Efficiency Committee:
The Alliance to Save Energy developed a Municipal Energy Efficiency Committee that brings
together representatives from 25 B&H municipalities. Through Municipal Energy Efficiency
Committee Alliance:
•
Trains municipal leaders and managers in the basics of energy and water management
concepts,
•
Trains municipal managers on how to develop business plans, short and long term
strategies for energy efficiency improvements in their municipalities,
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•
Helps municipalities develop and implement energy efficiency pilot projects in schools,
hospitals, and water utility companies, etc,
The Center for Energy Efficiency (CEEF) in B&H is a non-profit, member supported organization
that began its work as an action under the USAID funded MUNEE Program in May 2002. Center
is officially established in June 2005 with the aim of promoting rational use of energy sources and
improvement of energy efficiency in B&H. It has the following objectives:
•
TO REDUCE the burden of energy expenditures on a municipal, cantonal, entity and
state level budgets in
•
TO FACILITATE work of the network of B&H municipalities concerned with energy
and water efficiency problems
•
TO IMPROVE energy efficiency performance (in housing, public administration,
industry, transport, etc.) in B&H
•
TO ASSIST B&H in applying EU and international energy and environment standards
(including measures for prevention of climate change)
•
TO INTRODUCE specific legislation for energy efficiency improvement and climate
protection in B&H
•
TO DESIGN and implementing leak detection and other water-loss reduction programs
•
TO PROVIDE capacity building in the field of rational use of energy and water to in
Bosnia and Herzegovina
The Center for Ecology and Energy Tuzla is a Bosnian-Herzegovinan non-governmental
organization that encourages sustainable development in the field of environmental protection,
utilizing a combination of educational and practical work with cooperation at all levels of society
and investment in the people's resources."
3.2.3. Republic of Bulgaria
The Center for Energy Efficiency EnEffect - It is a non-governmental, non-for-profit
organization and its mission is to support the efforts of the central, regional and local authorities
in the sustainable development of the country through increasing energy efficiency.
A consulting subdivision (EnEffect Consult LTD) was established according to the Republic of
Bulgarian Energy efficiency Act requirements, whose main activities are in the field of energy
audits, building certification, researching and analyses. More information is available at
http://www.eneffect.bg.
EcoEnergy - It was established as “an energy efficiency network for Republic of Bulgarian
municipalities”.
There are 8 Local Energy Agencies created with the support of EU SAVE and Intelligent Energy
Programs. Currently they operate as NGOs, receiving small support from the municipalities in the
form of free of rent offices. For more information: http://abea-bg.org/index.html#b_bgv
Sofia Energy Agency was established in July 2001 under the SAVE II Program of the European
Union. SOFENA is a non-governmental organization and non-profit legal entity. The main
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objectives are: assist Sofia Municipality in developing a sustainable energy policy; develop
models for Sofia Municipality energy planning and to support their implementation; involve the
intellectual potential of the capital city in solving problems, concerning energy efficiency and
implementation of new energy saving and ecological technologies;
http://www.sofena.com/IndexEn_1.htm
ESD Republic of Bulgaria Ltd is a climate change and sustainable energy company, aiming to
deliver economic and financial viable solutions in sustainable energy, energy efficiency, local
sustainable energy planning... ESD Republic of Bulgaria is involved in developing JI (Joint
Implementation) projects. http://www.esdb.bg/
3.2.4. Republic of Croatia
Energy Institute "Hrvoje Pozar" Ltd
The Energy Institute "Hrvoje Pozar" founded by the Republic of Croatian Government, is the
central scientific and professional institution in Republic of Croatia for global planning in the
energy system and its subsystems. One of its main tasks is the elaboration of the strategy of
energy development of Republic of Croatia through the PROHES Project (Development and
Organization of the Energy Sector in Republic of Croatia) which was accepted by the
Government in 1994.
Republic of Croatian Energy Association
Republic of Croatian Energy Association (HED) is an expert association, which gathers, on voluntary
basis, experts and scientists in the field of energy industry. The non profit and non government
organization is member or the World Energy Council. The headquarters of this Society is located in
the same building as Energy Institute "Hrvoje Pozar" Ltd, in Zagreb.
Republic of Croatian Solar Energy Association
The headquarters of the Republic of Croatian Solar Energy Association, is located in the building of
the Technical Faculty in Rijeka.
EKONERG Holding Ltd
EKONERG Holding Ltd, is the energy company registered to manage with other companies.
Departments of EKONERG are: Energy systems and environmental protection department,
Thermal power unit and industrial energy department, Inspection and services and plant life
extension department, Consulting and engineering department, Information technologies
department.
HEP – ESCO Ltd
HEP – ESCO is the first energy service company in Republic of Croatia established by HEP
Group (HEP is the Republic of Croatian electric distribution company) with initiative from IBRD
(International Bank for Reconstruction and Development and GEF (Global Environmental
Facility). These world organizations donated 11,5 mil euros for realizing energy efficiency
projects in Republic of Croatia by HEP – ESCO.
EETEK Ltd
EETEK Energy Efficiency Technologies specializes in designing, implementing and financing
cost-savings energy projects. This company operates in Hungary, Slovakia, Republic of Bulgaria
and Republic of Croatia. EETEK's owner is FE Energy Efficiency and Emission Reduction Fund
established by EBRD (European Bank for Reconstruction and Development), DEXIA Project and
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Public Finance and few Japanese investors such as Kansai Electric Power Co., Marubeni Co., J
Power Ltd and Mitsui & Co. Europe. Fund has prepared approx. 20 mil euros for realizing costsavings energy projects in Republic of Croatia.
EKONERG - Energy and Environmental Protection Institute is a knowledge based company
with more than 50-years tradition of continual activity. Intellectual capital of more than 100
employees in the system makes a firm foundation for the most complex activities in the business
field.
EKONERG is the leading Republic of Croatian consulting company in power/ energy sector and
environmental protection field. Our services cover total life cycle of power and municipal
systems and plants/facilities, as well as environmental protection systems; starting from ideas,
feasibility studies, site selection and investigation, environmental impact assessment studies and
related licensing process, through conceptual, basic and main designs, construction leadership,
commissioning testing, plant/facility operation and maintenance system implementation (O&M),
up to QA system, Environmental Management System and finally decommissioning activities. In
the whole process we use the most update measuring, testing and IT equipment. Ekonerg's quality
management system has been certified under ISO 9001 (RWTÜV) since 1995.
REC Country Office Republic of Croatia
3.2.5. Republic of Georgia
Energy Efficiency Centre – Georgia: EEC was established in 1998 by European Union within the
framework of the EU Tacis Project "Creation of an Energy Efficiency Centre and Development
Natural Energy Study in Georgia".
The main objectives of EEC are: an improvement of energy efficiency in the country, an
improvement the country's energy balance, to reduce the environmental impact, to improve the
competitiveness of industry and commerce.
In April 2005, the “The Energy Efficiency and Cleaner Production Centre EECP”, which was
established at 2003, within the framework of the Georgian - Norwegian Capacity Building Program
on Energy Efficiency and Cleaner Production, was integrated into Energy Efficiency Centre
Georgia.
3.2.6. UNMIK
The Association of UNMIK Municipalities (AMK) developed an Municipal Action Plan for Energy
Efficiency 2008-2010 to support the implementation of the KPEERES 2007-2009 programmed.
AMK is working with GTZ in implementing a number of small projects at local level to promote
energy efficiency.
GTZ provided 0,2 million Euro for small demonstration projects at municipal level.
In 2007, a small private energy efficiency NGO named Association for Renewable Energy and
Energy Efficiency AKEREE was established.
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3.2.7. Former Yugoslav Republic of Macedonia
Former Yugoslav Republic of Macedonian Centre on Energy Efficiency (MACEF), which
mandate includes:
•
promotion and implementation of EE measures to protect the environment
•
advise and expert counseling for energy and drinking water efficiency management
•
planning for energy and energy resources development
•
planning and implementation of Action Plans for EE at municipality level
•
regional and international collaboration
•
participation in National Energy Policy Designs.
Former Yugoslav Republic of Macedonian Energy Brigades (MEB) is a full member of the
International Energy Brigades (IEB) which has the following mission as a civil society
organization:
•
organize communities towards sustainable energy use and management
•
educate people on sustainable development, energy efficiency and renewable energy
•
demonstrate energy saving principles, practices, and technologies
•
advocate policies in support of sustainable energy and poverty elimination
•
facilitate partnership building among different groups at the local and international
levels.
Association of Power Engineers of Former Yugoslav Republic of Macedonia (ZEMAK) This
organization can be described as Energetic Association in Former Yugoslav Republic of
Macedonia that has, during the last twelve years, established itself in the national and
international scientific and professional circles. Its main goal is to monitor, promote and improve
the energy sector in Former Yugoslav Republic of Macedonia. Thus, ZEMAK has historically an
important role as a responsible and permanent driver, promoter and initiator for resolving of allimportant questions directly or indirectly interconnected with the power energy sector in the
country, and therefore the entire economy in the country as well. The main focus of ZEMAK is in
macro energy supply.
The Research Centre for Energy, Informatics and Materials of the Former Yugoslav Republic
of Macedonian Academy of Sciences and Arts (ICEIM-MANU) ICEIM-MANU was
established in 1994 with the mission of initiating and coordinating national research programs and
performing high-level research in selected fields, both applied and basic. Since then, the whole
scientific activity has been realized through over forty research projects, out of which twenty nine
are on international level - funds from EC, UN Agencies, USAID and some European
governments. Specifically, the applied research of the Centre has been devoted to energy
strategies, energy efficiency and renewable energy sources, as well as the environmental impacts
of various energy technologies, including greenhouse gases emissions and climate change. The
results contributed to some strategic documents, adopted by the government, which shape the
national policy in energy and the environment sectors.
The Association of the Units of the Local Self Governments (ZELS) was founded in 1972 and
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representatives of 30 municipalities are its members.
Organization of Consumers of Macedonia (OPM) was formed in 1996, active member of the
international organization for protection of consumers “Consumers International” based in
London. Main activities of OPM are based on the rules for protection of the consumers,
established and enacted by UN in 1985. Besides the headquarters in Skopje, OPM has its regional
offices in Bitola, Stip and Ohrid. Since its establishment, OPM has Commitee for Patient Rights,
which so far had undertaken the activities of preparation of information database of patients rights
in Macedonia, preparation and publishing of brochure “The Rights of Health Care Insurers in
Macedonia”, and answering to claims of citizens, when those cannot be answered by the
Counseling Bureau in the Headquarters.
Association of Consumers of Macedonia is an NGO for consumers’ rights protection.
3.2.8. Moldova
Center of Alternative Energy from Moldova (CAE Moldova) CAE’s objective is to raise public
awareness on the issues of alternative energy and waste management.
Cleaner Production and Energy Efficiency Centre (CPEE) CPEE is an NGO that aims to increase
energy efficiency in industry, district heating systems and buildings. Its target audience are
managers and engineers of the production and building companies.
Alliance to Save Energy (ASE) ASE is an American public-private partnership that is active globally
and has a local office in Moldova. MUNEE, co-funded by the USAID, is its own project in the
region with the aim to develop a regional network and encourage energy efficiency at the
municipal level.
Austrian Development Agency (ADA). In 2003, ADA financed renovation of the heating system in
a dermatological hospital outside capital Chisinau.
The Alliance for Energy Efficiency and Renewables (AEER) is a new NGO registered in 2007.
The AEER aims at promoting EE and RES in Moldova through legislative change and public
awareness.
3.2.9. Republic of Montenegro
There are initial activities conducted by several non-governmental institutions, but they are not
coordinated and fully recognized by MEEU. In recent period EE and RES are recognized from many
non-governmental institutions:
ƒ Municipality Podgorica (capital city);
ƒ Union of Municipalities of Montenegro;
ƒ NGO Expeditio;
ƒ NGO Green Home;
ƒ EPCG (National Electricity Company), etc.
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3.2.10.
Romania
Romanian Energy Policy Association (APER ) is an independent professional organization (NGO,
non-profit), established under EC SYNERGY program. APER provides energy information and
knowledge to decision makers and experts with respect to energy policy development and
analysis. It acts as an independent forum for exchange of experience and opinions, and supports
business development in the energy and environment fields.
Romanian Association for Energy Efficiency (SOCER) is a technical and non-governmental
association, with juridical personality, a professional body and a non-profit organization focusing
on the efficient use of energy. It conducts activities Romania and the Republic of Moldova. Its
target audience for technical cooperation includes local and regional authorities, state and private
companies from all economic fields, public institutions and natural persons. In its initiatives,
SOCER supports the Romanian Agency for Energy Conservation (ARCE), the governmental
body for energy efficiency matters.
Local Agency for Efficient Management of Energy & Environment Problems (ALGEPEM),
Iasi. The activities of ALGEPEM Iasi are coordinated by a management board which includes
managers of all local public service companies (for electricity, gas, transportation, etc) and
specialists/consultants in the field of energy and the environment. The objectives of the agency
include promoting energy efficiency on the local level; developing and implementing an Energy
Master Plan for the city of Iasi; modernizing of the heating system; promoting new and renewable
energy sources; organizing special events - e.g.: "In town without my car," etc.
Centre for Promotion of Clean and Efficient Energy in Romania (ENERO) is a nongovernmental, non-profit R&D organization active in the energy field. The ENERO team brings
together highly experienced experts in the energy field, including experts in economics and
legislation, with wide experience in the management of the complex international projects and in
consulting activities. The objectives of ENERO are to develop the efficient and clean use of
energy, promote renewable energy sources, support new and innovative energy technologies, and
support harmonization of Romania’s energy policies with the European Union acquis.
In 2000, ENERO was selected to join the European OPET Network coordinated by DG TREN,
covering energy efficiency and renewable energy at the national level. The main activities of the
OPET Network are:
•
Consultancy, market studies and research services in the energy field;
•
Promotion of the results of European/international energy projects and programs, with
targeted information retrieval and dissemination;
•
Provision of assistance to technology developers and suppliers in opening and
exploiting new markets (organization of workshops, seminars and conferences, training
and information events and networking activities).
Romanian "Energy Cities" Network (OER) is a non-governmental organization, gathering 38
members, all of which are municipalities interested in improving the energy efficiency in public
services (district heating, public lighting, water and gas supply, waste collection and storage, local
transportation, etc.) and in promoting renewable energy and environmental protection.
Institute for Studies and Power Engineering (ISPE) founded in 1949, this consulting &
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engineering company is now 100% private. ISPE developed through its projects practically all of
the National Power System, from the generation up to the transmission and distribution systems
for heat and power. The ISPE’s medium and long-term development goals follow closely the
Romanian strategy for EU integration, adoption and application of the EU acquis. The transition
to a sustainable energy future in Central and Eastern Europe is reflected within ISPE’s strategy by
implementing, through its projects, cleaner technologies and imposing the use of energy resources
in an environmentally friendly manner.
The ISPE business area is structured as follows:
•
Markets: Power and Heat Generation, including renewable energy; Power Transmission and
Distribution; Environmental Protection; Infrastructure Systems; Public Services; Industry;
Civil and Industrial Works;
•
Scope of services: Technical and financial consulting; Studies; Basic and Detailed
Engineering; General Contractor; Project Management; Digital Systems Configuring and
Commissioning; On Site Supervision and Commissioning.
ASA Holding SA is an engineering company involved in the fields of energy and the environment.
ASA actively promotes energy solutions for the reduction of environmental pollution and fossil
fuel consumption. The fields of business are:
•
Passive houses
•
Design services for new / retrofitted power plants
•
Steam/hot water industrial facilities
•
Turn-key projects
•
Cogeneration projects (CHP)
•
Environmental services
Institute of Electric Power Studies & Consulting (ISCE) provides information, consultancy and
studies mainly on hydro but also on other renewable energies, for national and local decision
makers in Romania; offers feasibility studies in the field of energy including renewables for
public and private organizations; co-operates with other institutions specialized in energy matters,
from Romania and abroad with the aim to promote energy efficiency and renewable energy.
Research Institute for Electrical Engineering New Energy Sources Laboratory (ICPE) is
participating in the 5th Framework Program, the Specific Program on Energy, Environment and
Sustainable Development (EESD). ICPE is an electrical engineering company that has initiated
the use of renewable energy. Its business areas are:
•
Photovoltaic energy
•
Wind energy
•
Hybrid systems
IPA SA is active in developing projects and research, and disseminating knowledge in the areas of
Energy Issues, Energy Efficiency, Renewable Energy. Founded in 1960 as the R&D Institute for
Automation, IPA SA has kept until now its basic profile: research and development, production,
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mounting, service and consulting for automation equipment and information technology in
industry (chemical, petrochemical, metallurgy, building materials, energy, machine building,
etc.), environmental protection (noxious emission control, meteorological and hydrological
parameters control), services for citizens (public information, the control for the lighting of
airfield tracks, monitoring of seismic parameters, survey of hydro-technical dams, other survey
systems).
Now IPA SA is a private company. Through its branches in the main Romanian cities (Bacau,
Cluj, Craiova, Galati, Pascani, Timisoara), IPA SA covers the whole territory of Romania. IPA
SA develops R&D activities on internal projects (ORIZONT 2000, RELANSIN, PNCDI Romanian R & D National Program) and international projects (TTQM - PHARE, EUREKA,
Leonardo da Vinci i.e.).
Intertermo Concept Ltd. Intertermo's activities are targeted at citizens, local and regional
authorities, urban planners, energy specialists, research and academy experts, representatives of
municipalities, ministries and governmental agencies, small enterprises and consulting firms,
representatives of international programs and financing organizations and market operators.
Other organizations:
AEE Romanian Chapter
Arcon SRL Bucuresti Romania
Automatizari Orion SRL
Bucharest Building Institute
Bureau of Industry & Technology Ltd. (BIT)
Bucharest Polytechnical Institute
ECO-VEL SRL
EC SYNERGY, Project Office Ministry of Industry and Trade
Energy Consumer's Association
Energy Cities Network (ORASE Energie)
Energy Research and Modernization Institute
(ICEMENERG)
ICPET S.A. Bucharest
Institute of Power Studies and Design (ISPE)
International Conference of Large High
Voltage Electrical Systems
Romanian Technical Energy Efficiency Association
3.2.11.
Republic of Serbia
There are five Regional Energy Efficiency Centers (REEC) established as independent units at
Republic of Serbian universities and Serbian Industrial Energy Efficiency Network (SIEEN)
established at the Inovation Center of the Mechanical Faculty of Belgrade. REECs are located at
the technical faculties in Belgrade, Novi Sad, Niš, Kragujevac and Kraljevo. SIEEN is located at
the Mechanical faculty in Belgrade within the Innovative Centar. Their tasks are the development
of energy efficiency projects, transfer of innovative technologies, consulting to industry and
households as well as organization of education and trainings.
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Standing Conference of Towns and Municipalities (SCTM), the national association of local
authorities in Republic of Serbia was founded in 1953, following the traditions of international
associations of local authorities throughout the world. The SCTM is an organization dedicated to
the promotion and development of local self-government, standing for their interests and of the
co-operation among local authorities. One of their field of interest is energy efficiency.
Since 2005 German Organization for Technical Cooperation (GTZ) has co-financed (together with
municipalities) a number of small energy efficiency projects at local level in cooperation with SCTM
(total value of the energy efficiency projects is about 550,000 EUR).
Many NGOs participate in promotion of energy efficiency (besides other projects) like: Chamber of
Engineers, JINA, PIRGOS, ALFA, VoF, CEPER etc. Some of their projects were financially
supported by SEEA.
3.2.12.
Turkey
Istanbul Enerji AS is owned by Istanbul Metropolitan Municipality
Website: www.istanbulenerji.com/default.asp
TUBITAK MRC - TUBITAK Marmara Research Center
ESERI - Energy Systems & Environmental Research Institute
TR-41470 Gebze KOCAELI, TURKEY
Website: www.mam.gov.tr/english/escae/
3.2.13.
Ukraine
Association of Ukrainian Cities
ARENA-ECO is a leading Ukrainian consulting, engineering and business development organization
providing services aimed at improvement of fuel and energy efficiency and environmental
protection. Its mission is to promote sustainable economic development and environmental
protection of Ukraine through the energy efficiency improvements in energy, industrial, transport,
utility, housing, agricultural and other sectors.
Municipal Development Institute
Ukrainian Union of Industrialists and Entrepreneurs
Centre for Energy Savings, Kiev Polytechnic Institute
Energy Alliance
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ANNEX II. CONTACT INFORMATION FOR SELECTED INSTITUTIONS
REPUBLIC OF ALBANIA
National Agency for Energy Conservation
Contact information being sought.
Besim Islami (Chairman)
Republic of Albanian National Agency of Natural Resources
Blloku – Vasil Shanto
Tirana
Republic of Albania
Telephone: +355 4 257 382; +355 692 149 084
E-mail: [email protected]
http://www.akbn.gov.al/
Republic of Albanian Electricity Regulatory Authority
Rr. Marsel Kashen 10
Tirana
Republic of Albania
Telephone/Fax: +355 4 222 963
E-mail: [email protected]
http://www.ere.gov.al
Ministry of Labor and Social Welfare
Telephone: +355 6 920 66811 (mobile of Deputy Minister Kastriot Sulka)
E-mail: [email protected]
Republic of Albania-EU Energy Efficiency Centre
Blvd. Zhan D’Ark 2
2426 Tirana
Republic of Albania
Telephone: +355 4 233 835
Fax: +355 4 233 834
E-mail: [email protected]
http://www.eec.org.al/
Edmond Hido, Executive Director
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BOSNIA & HERZEGOVINA
Center for Energy Efficiency
Dr. Zhemerlina 17 (or Ibrahima Ljubovica 23)
71000 Sarajevo
Bosnia & Herzegovina
Telephone/Fax: +387 33 638 174; +387 61 377 691 (mobile of Ms. Lena Bratic)
E-mail: [email protected]
http://www.ceef.co.ba/
REPUBLIC OF BULGARIA
Ministry of Economy and Energy
8 Slavianska Street
Sofia
Republic of Bulgaria
Telephone: +359 2 94071
Fax: +359 2 987 2190; 981 9970; 981 5039
E-mail: [email protected]
http://www.mi.government.bg/
Energy Efficiency Agency
37 Ekzarh Josif Str., 4th Floor
1000 Sofia
Republic of Bulgaria
Telephone/Fax: +359 2 981 58 02
E-mail: [email protected] (Executive Director Mr. Tasko Ermenkov)
http://www.seea.government.bg/index_en.php
State Energy and Water Regulatory Commission
Dondukov 8-10
1000 Sofia
Republic of Bulgaria
Telephone: +359 2 988 87 30
Fax: +359 2 988 87 82
E-mail: [email protected]
http://www.dker.bg/
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Ministry of Regional Development and Public Works
Kiril and Metodii Street 17 – 19
Sofia
Republic of Bulgaria
Telephone: +359 2 940 5430; 988 2954
E-mail: [email protected]
http://www.mrrb.government.bg
Center for Energy Efficiency “EnEffect”
1, Hristo Smirnensky Blvd., 3rd Floor
1164 Sofia
Republic of Bulgaria
(If sending mail, replace street address with P.O. Box 43)
Telephone: +359 2 963 1714; 963 0269
Fax: +359 2 963 2574
E-mail: [email protected]
http://www.eneffect.bg/
Zdravko Genchev, Executive Director
REPUBLIC OF CROATIA
Ministry of Economy, Labor and Entrepreneurship
Ulica grada Vukovara 78
10 000 Zagreb
Republic of Republic of Croatia
Telephone: +385 1 6106 111
E-mail [email protected]
http://www.mingorp.hr
Republic of Croatian Energy Regulatory Agency
Koturaška cesta 51
10000 Zagreb
Republic of Republic of Croatia
Telephone: +385 1 6311 410
Fax: +385 1 6115 344
E-mail: [email protected]
http://www.hera.hr
Environmental Protection and Energy Efficiency Fund
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Ksaver 208
10000 Zagreb
Republic of Croatia
Telephone: + 385 1 539 19 14
Fax: + 385 1 539 18 60
E-mail: [email protected] (of Mr. Marijan Hohnjec)
University of Zagreb Faculty of Electrical Engineering and Computing
Unska 3
10000 Zagreb
Republic of Croatia
Telephone: +385 1 612 99 86
Fax: +385 1 612 98 90
E-mail [email protected] (of Ms. Vesna Bukarica)
Energy Institute Hrvoje Požar
Savska cesta 163
P.B. 141
10001 Zagreb
Republic of Croatia
Telephone: +385 1 6326 100; 6040 588
Fax: +385 1 6040 599
E-mail: [email protected]
http://www.eihp.hr/
REPUBLIC OF GEORGIA
Republic of Georgian National Energy Regulatory Commission
#45 Al. Kazbegi Ave.
0177 Tblisi
Republic of Georgia
Telephone: +995 32 31 10 43
Fax: +995 32 24 10 40
E-mail: [email protected]
http://www.gnerc.org/
Guram Chalagashvili, Chairman
Ministry of Energy
10, Lermontov Street
0105 Tbilisi
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Republic of Georgia
Telephone: +995 32 98 85 29
Fax: +995 32 99 78 47
E-mail: [email protected] (of Deputy Minister George
Abdushelashvili)
http://www.minenergy.gov.ge/
Energy Efficiency Centre – Republic of Georgia
19, D.Gamrekeli Str. VI floor
0160 Tbilisi
Republic of Georgia
Telephone: + 995 32 242 540; + 995 32 242 541
Fax: + 995 32 242 542
E-mail: [email protected]; [email protected] (of Director George Abulashvili)
http://www.eecgeo.org/
FORMER YUGOSLAV REPUBLIC OF MACEDONIA
State Energy Agency
Zeleznicka Str. Bb
1000 Skopje
FYR Former Yugoslav Republic of Macedonia
Telephone: +389 2 329 8907
E-mail: [email protected]
http://ea.gov.mk/
Atanas Srbovski, Director
Ministry of Economy
Juruj Gagarin 15
1000 Skopje
FYR Former Yugoslav Republic of Macedonia
Telephone: +389 2 3084 470; +389 2 3084 471
Fax: +389 2 3084 472
www.economy.gov.mk
Energy Regulatory Commission
Dimitrie Cupovski St. 2, 4th floor
1000 Skopje
FYR Former Yugoslav Republic of Macedonia
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158
Telephone: +389 2 3233 580
Fax: +389 2 3233 586
E-mail: [email protected]
http://www.erc.org.mk
Ministry of Environment and Physical Planning
Drezdenska 52
1000 Skopje
FYR Former Yugoslav Republic of Macedonia
Telephone: + 389 2 3066 930
Fax: + 389 2 3066 931
E-mail: [email protected]
http://www.moepp.gov.mk
Former Yugoslav Republic of Macedonian Center for Energy Efficiency
Nikola Parapunov Str. 3а/52
1000 Skopje
FYR Former Yugoslav Republic of Macedonia
Telephone: +389 2 3099 216; +389 70 22 85 77
Fax: +389 2 361 013
E-mail: [email protected]
Prof. Konstantin Dimitrov, Executive Director
MOLDOVA
Ministry of Industry and Infrastructure
Stefan cel Mare Blvd. 69
2001 Chisinau
Moldova
Telephone: +373 22 27 80 59
Fax: +373 22 27 80 94
http://www.mii.gov.md/
Ministry of Ecology and Natural Resources
Cosmonautilor Street 9
2005 Chisinau
Moldova
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Telephone: +373 22 20 45 07
Fax: +373 22 22 68 58
E-mail: [email protected]
National Agency for Energy Efficiency and Renewables
This institution did not have an office location or contact information at the time of
publishing this report.
Institute of Energy of the Academy of Sciences of Moldova
1, Academiei Street
2028 Chisinau
Moldova
Telephone/Fax: +373 22 73 53 88; +373 22 24 55 33
E-mail: [email protected]
Commission for Energy Efficiency and Renewable Energy Resources
Contact the president of the Academy of Sciences (see above), who oversees the
Commission.
National Energy Regulatory Agency
Columna Street 90
2012 Chisinau
Moldova
Telephone: +373 22 54 13 84
Fax: +373 22 22 46 98
E-mail: [email protected]
Ministry of Local Governments Administration
162 Stefan Cel Mare Blvd., 8th floor
2001 Chisinau
Moldova
Telephone: +373 22 200 172
Fax: +373 22 238 922
E-mail:[email protected]
Valentin Guznac, Deputy Minister
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Alliance for Energy Efficiency and Renewables
78, Vasile Alecsandri St., Office 510
2012 Chisinau
Moldova
Telephone: +373 22 20 00 90
Fax: +373 22 21 40 07
E-mail: [email protected]
Tanya Lujanscaia, Manager
ROMANIA
Romanian Agency for Energy Conservation (ARCE)
16, Boulevard Nicolae Balcescu
Sector 1
010052 Bucharest 37
Romania
Telephone: +40 21 3125 264
Fax: +40 21 3123 197
E-mail: [email protected]; [email protected] (of Mr. Corneliu Radulescu)
http://www.arceonline.ro/
Corneliu Radulescu, Vice President
Romanian Energy Efficiency Fund
2A Johann Strauss Street, 6th floor
Sector 2
020312 Bucharest 30
Romania
Telephone: +40 21 233 88 01; +40 21 233 88 02
E-mail: [email protected] (of Mr. Mihai Voronica)
Mihai Voronca, Executive Director
Ministry of Finance
Strada Apolodor 7
Sector 5
050741 Bucharest
Romania
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Telephone: +40 21 410 3400; +40 21 410 3550; +40 21 410 5025
Fax: +40 21 312 2509
http://www.mfinante.ro
Ministry of Development, Public Works and Housing
Strada Apolodor 17
Latura Nord
Sector 5
050741 Bucharest
Romania
Telephone: +40 37 211 1409
Fax: +49 37 211 16 00
E-mail: [email protected]
http://www.mie.ro/
Ministry of Economy and Commerce
Strada Apolodor 17
Sector 5
050741 Bucharest
Romania
Telephone: +40 21 319 9759
Fax: +40 21 312 2509
E-mail: [email protected]
http://www.mefromania.ro/
Ministry of Environment and Sustainable Development
Blvd. Libertatii 12
Sector 5
Bucharest
Romania
Telephone: +40 21 316 0215
E-mail: [email protected]
http://www.mmediu.ro/
Ministry of Interior and Administrative Reform
Piata Revolutiei 1A
Sector 1
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Bucharest
Romania
Telephone: +40 21 310 3072
E-mail: [email protected]
http://www.mira.gov.ro/
Ministry of Transport
Bulevardul Dinicu Golescu Street 38
Sector 1
Bucharest
Romania
Telephone: +40 21 319 9565
E-mail: [email protected]
http://www.mt.ro/
Romanian Energy Regulatory Authority (ANRE)
Strada Constantin Nacu 3
Sector 2
020995 Bucharest
Romania
Telephone: +40 21 311 2244
Fax: +40 21 312 4365
E-mail: [email protected]
http://www.anre.ro/
Romanian Energy Policy Association (APER)
Casa Academiei, Rooms 6.223-6.225
Calea 13 Septembrie 13
Bucharest
Romania
Telephone: +40 21 411 9829
Fax: +40 21 335 0280
E-mail: [email protected]
http://www.aper.ro/
TURKEY
General Directorate of Electrical Power Resources Survey and Development
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Administration
Eskisehir Yolu 7. Km. Nr. 166
06520 Зankaya - Ankara
Turkey
Telephone: +90 312 295 52 24
Fax: +90 312 295 50 05
http://www.eie.gov.tr
Ministry of Energy and Natural Resources
Inonu Bulvari 27
Bahcelievler
Ankara
Turkey
Telephone: +90 312 212 64 20
Fax: +90 312 223 40 84
http://www.enerji.gov.tr/
Energy Conservation Coordination Board
No contact information available.
SERBIA
Serbian Energy Efficiency Agency (SEEA)
Omladinskih Brigada 1
YU-11070 Novi Beograd
SERBIA (REPUBLIC OF)
Telephone: +381 11 313 19 57 Fax: +381 11 311 16 49
Website: www.seea.sr.gov.yu
Bojan KOVACIC, Deputy Director (Acting Director)
Email: [email protected]
Provincial Energy Efficiency Centre Novi Sad
Trg Dositeja Obradovica 6
RS-21000 Novi Sad
SERBIA (REPUBLIC OF)
Telephone: +381 21 485 23 94
Fax: +381 21 635 07 75
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Website: www.reec.ns.ac.yu
Dusan GVOZDENAC, Director
Email: [email protected]
Regional Energy Efficiency Centre Beograd
Kraljice Marije Street 16
YU-11000 Beograd
SERBIA (REPUBLIC OF)
Telephone: +381 11 337 03 53 Fax: +381 11 337 0364
Milan PETROVIC, Director
Email: [email protected]
Regional Energy Efficiency Centre Nis
Aleksandra Medvedeva 14
YU-18000 Nis
SERBIA (REPUBLIC OF)
Telephone: +381 18 588199 Fax: +381 18 588199
Mladen STOJILJKOVIC, Director
Email: [email protected]
Regional Euro-Energy Centre Kragujevac
Sestre Janjic 6
YU-34000 Kragujevac
SERBIA (REPUBLIC OF)
Telephone: +381 34 336 004 Fax: +381 34 336 004
Website: ept.kg.ac.yu
Milun BABIC, Director
Email: [email protected]
UKRAINE
Ministry of Fuel and Energy
30, Khreshchatyk Street
01601 Kyiv
Ukraine
Telephone: +38 44 221 4364
E-mail: [email protected]
http://www.mpe.energy.gov.ua
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National Agency for Efficient Use of Energy
State Inspectorate for Energy Conservation
Ministry of Construction, Architecture, Housing and Communal Services
9 Velyka Zhytomyrska Street
01025 Kyiv
Ukraine
Telephone: +38 44 226 22 08
E-mail: [email protected]
http://www.minregionbud.gov.ua
Institute for Energy
Pokrovskaya Street 11
04070 Kyiv
Ukraine
Telephone/Fax: +38 44 4170 142
Institute for Energy Saving and Energy Management
National Technical University
Pobeda Street 37, Block 22, Office 309
03056 Kyiv
Ukraine
Telephone: +380 44 241 76 37; +380 44 454 93 71: +380 44 241 77 14
E-mail: [email protected]
http://www.ntu-kpi.kiev.ua/
International Center for Energy Efficient Technologies
Ivan Gontya Street
04112 Kyiv
Ukraine
Telephone: +380 44 455 57 10
E-mail: [email protected]
Agency for Rational Energy Use and Ecology (ARENA ECO)
P.O. Box 36
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02140 Kyiv
Ukraine
Telephone: +380 44 528 80 88; +380 44 585 15 60
Fax: +380 44 585 15 61
E-mail: [email protected]
http://www.arena-eco.com
Mykola Raptsun, President
UkrESCO
A Akhmatova Street 13, Room 114
02068 Kyiv
Ukraine
Telephone: +380 44 569 16 50; -51, -02, -03, -74
Fax: +380 44 569 16 73
E-mail: [email protected]
http://www.ukresco.com/
Municipal Development Institute
Igorivska Street 14a
04070 Kyiv
Ukraine
Telephone: +380 44 428 76 10; +380 44 428 76 11
Fax: +380 44 428 76 12
E-mail: [email protected]; [email protected] (of Mr. Ihor Slobodenyuk)
http://www.mdi.org.ua/
Ihor Slobodenyuk, Executive Director
Ministry of Communal Services and Housing
Oleksandr Mazurchak, Deputy Minister
Parliamentary Committee on Communal Services and Housing
Oleksandr Popov, Deputy Head of Committee
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