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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
Members
3
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
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
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
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
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
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

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The Bulgarian ESCO market perspectives

  • 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
  • 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