1 Twinning Project Project Number BG2004/IB/EY/01 “Institutional Building at the Energy Efficiency Agency (EEA)” Financial Incentives Seminar 28 th September 2007, SOFIA Ing. Ricardo Silvoni

2 /11 Contents  Task: Financial incentives: Main financial tools  Backgroud  Activity  Results  Task: Financial incentives: ESCO  Backgroud  Activity  Results  Task: Agreement  Backgroud  Activity  Results  Main steps for the future

3 /11 Task Financial incentives: Main financial instruments Background  EE is a priority and the first action are starting in Bulgarian Activity  Analysis of Relevant Bulgarian legislation  Survey on financial instruments actually in Bulgaria  Collection of Italian experiences  Comparison between Bulgarian needs and Italian best practices Results  Final Report on financial instruments

4 /11 Task Financial incentives: ESCO Background  ESCO is the main partner to linked needs, solution and finance. At the monet the Bulgarian ESCO market is in the beginning. Activity  Analysis of Relevant Bulgarian legislation  Survey on actually in Bulgaria  Collection of Italian experiences  Comparison between Bulgarian needs and Italian best practices Results  Final Report on financial instruments: section ESCO

5 /11 Task: Financial incentives Main areas to be developed EEA advice of the EE sistem  EEA has to assume a significant role to provide assistance to the Municipalities to support the ESCOs and the relevant financial instruments linked to these Companies.(i.e EPC Contracts)  EEA has to undertaken more functions in the phase of control and monitoring of the process to get the above indicative target for Energy Savings. In particular, the EEA could coordinate the measures implemented in the different energy consumption sectors and to control the activities of ESCOs through the relevant registration in the Agency  ESCOs as subject to implement and to manage the EE interventions linked to the long term Bulgarian EE Strategy Program and the Three Years Action Plan to be issued in May 2007 by MEE/EEA, accordingly to the EU Directive 32/06.  The Collaboration to EEA BG and SWERC as the ENEA and AEEG (Italian Authority for the Energy regulation) in order to developed the mechanisms as Italian mechanisms

6 /11 Task: Financial incentives Instruments  Application of contracts as EPC, TPF, BOOT.  Guarantees form the Central Budget for the Municipalities to be involved in the EPC with the registered ESCO as contractual partner.  Financial Yearly Law. Mechanisms including the taxes policy, subsidizations process and other financial incentives  Participation also of BEEF BG as guarantee of the sustainable economic appeal of the projects introduced by the Municipalities/ESCOs with EPC Contracts.  Market based instruments, in particular the White Certificates ?

7 /11 Task Financial incentives: Agreement “Co-ordination with local energy efficiency agencies and other institutions” Background  EEA ha Activity  Contact with the key-players ABEA SOFENA Sofia Energy Center Plodvid Agency  Drafting the agreement  Signing Results  An agreement signed with ABEA

8 /11 Task Financial incentives: Agreement “Co-ordination with local energy efficiency agencies and other institutions” Main objectives  To increase the relationship of the EEA and other institutions of the Government in energetic field in particular with ABEA and the other energetic local agencies of the type ONG.  to work to propose to decentralize some functions of the EEA to develop the local level, rather the Regions and Municipalities  develop a system of coordination among the EEA and the different institutions that are present in the territory of Bulgaria. To involve the National Bulgarian corporate body of the Municipalities, that represents all the Municipalities of Bulgaria and in this way could become the fittest channel to individualize an effective mechanism of support to the different problem list that have to resolve the Municipality in energetic sector

9 /11 Future steps ? Financial incentives and ESCO market Keeping E.S.Co. National Register assuring full accomplishment to standards. Certify saving performed by E.S.Co. (i.e. within White Certificates procedures) by verifying the correct application of the legislation and the quality of the interventions. Assure coordination and congruence to Government policy and targets and assure adequate technical support. Create the rules of the market to developed the mechanisms to incentive the EE system as White Certificate. Agreement The cooperation agreements between EEA and the institutions will stablish the joint procedures and methods to support the implementation EE and RES measures from national to regional and local level, including joint information campaigns and joint projects

10 /11 Italian EE sistem Effect of the implementation of EE mechanism Financial incentives and ESCO market 0,9 Mtoe Energy Saving ,9 Mtoe Energy Saving Objectives 2009 Italian Objectives 2005 – 2006: 0,7 Mtoe Italian EE mechanism produced energy saving in the end user: 1,4 Mtoe (2005 – 2006) Mechanism produce: more of 85% fixed of the energy saving (2005 – 2006)

11 /11 …Thank you for your attention Ing. Ricardo Silvoni Twinning Project Institutional Building at energy Efficiency Agency Energy Efficiency Agency to the Minister of Economy and energy Bulgaria 1000 Sofia 37, Ekzarh Jossif Str. tel/fax: