Financing energy efficiency in Bulgaria and other countries from Central and South-Eastern Europe SEI forum event

1. www.alliance-ee.bg

2. The Bulgarian
ESCO Market
Perspectives
Financing energy efficiency in Bulgaria and other countries from
Central and South-Eastern Europe
Kiril Raytchev
Chairman,
Alliance for Energy Efficiency in Bulgaria
Sofia, 28 June 2018

3. Members
3

4. ESCO Activity (Passivity) in BG
4
 Decreasing ESCO notices
 Increasing share of terminations
(of ESCO notices)
 Trending towards zero net activity
Source: aop.bg
 Decreasing ESCO investments
 Increasing contracts’ value and
duration
 Only 100 Million BGN (51 Million
EUR) in 130 Entities for 10 yrs.
-10
-5
0
5
10
15
20
25
30
2006 - 2017
Number of Procurments Number of Terminations
0
2
4
6
8
10
12
14
16
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
MillionsBGN
ESCO Investments in EE

5. ESCO Minor Obstacles in Bulgaria
5
Project Structuring (CAs*)
Feasibility study | Multi-solutions analyses | Development of viable proposal
Tender Procedure (CAs)
Requirements definition | Complex regulation and law | Methods for estimation
Regulation and Law (Government)
ESCO is forbidden to conduct feasibility study | Just energy savings | Just third
party and ESCO financing
Contracts
Still not standardized | Construction vs. Service
* CAs - Contracting Authorities

6. ESCO Major Obstacles in Bulgaria
6
-
10
20
30
40
50
MillionsBGN
Sources of EE Financing in the Public sector for 2016: 137 Million BGN
(70 Million EUR)
Sources: seea.government.bg; bgeef.com
How efficient is current energy efficiency financing
in the public sector?
Average Ratio:
1 952 BGN / MWh
ESCO Ratio:
925 BGN / MWh

7. ESCO Perspectives
7
Energy Traders
(obliged by the Act on
the EE to deliver energy
savings for the end
consumers)
ESCOs
Other participants:
- Residential Sector;
- Small Commercial Buildings;
- SMEs.
Government
Buildings of > 250
sq.m. GFA
Municipality
Buildings of > 250
sq.m. GFA
Private Commercial
Buildings of > 250
sq.m. GFA
Large Enterprises
Public Street
Lighting
Target for 2018:
1 498 GWh
Total GFA:
8 573 303 sq.m.
Total GFA:
11 000 000 sq.m.
Power: 100 MW

8. Conclusions
8
Billion BGN size of the EE market in Bulgaria
Steady and irreversible increase expected by 2030
Grants will not be sufficient
Private investment to be unlocked | Multiplicative effects
Special ESCO Facility needed
Higher number of well-structured and viable projects | Pooling | Super ESCO
New products, services and models required
Industry 4.0 | DR + ESCO | EE + Add-ons | Alliance for Energy Efficiency
competence concentration

9. ALLIANCE FOR ENERGY EFFICIENCY
Kiril Raytchev
Chairman
Dimitar Spisarevski Blvd. 3, office 203 / office 301
Sofia, 1592
E: office@alliance-ee.bg
M: +359 894 602 249; +359 896 895 591
www.alliance-ee.bg
9
Contacts