1. Enhancing Support to Energy Efficiency in the Western Balkans
Davor Kunc
Programme Manager, DG NEAR
Habitat Conference on Residential EE, Brussels│ April 2017

2. Content ENERGY EFFICIENCY & RENEWABLES:
Policy Context: EE acquis & Energy Community
Financing 1: Regional Energy Efficiency Programme (REEP)
Financing 2: Green for Growth Fund (GGF)
New EE Brochure: "Passport" of EE Policy & Investments in WB6

3. Policy Context: EE and RE Targets in the Region
Adaptations to EU 2020
Lower percentages, phase-in periods
Energy efficiency
savings of 9% of final energy consumption, by 2018
Renewable energy
to be achieved by 2020
Albania 38 %, Bosnia and Herzegovina 40 %, Croatia 20 %, Former Yugoslav Republic of Macedonia 28 %, Montenegro 33 %, Serbia 27 %, Kosovo* 25 %
National EE Action Plans (NEEAPs)
Operationalize implementation of the transposed acquis, and reaching the Energy Community targets
NEAR financed workshops for the creation of first NEEAP – now 2nd and 3rd created and fully owned by the Six
NEEAPs and Targets
NEAR's policy framework for EE our link with investments

4. Energy Community: EE Coordination Group
Financed by NEAR, meets each 4 months
WB6, several Neigh-East countries, IFIs (EBRD, KfW, EIB, IFC, World Bank), donors (GIZ, USAID, UNDP), and DG NEAR
Key coordination mechanism: identify gaps, ensure no overlaps
Tracking the EU-supported REEP and GGF
Identify new financing needs for EE in the region

5. Evolution of NEAR support to EE
Private sector: EEFF & GGF
First introduction of an investment fund, for private sector leverage of EU funds
Public sector: REEP
First introduction of the Public Dialogue window
First introduction of ESCOs
Residential: REEP Plus
Study completed in Endorsed by the WB6 and EECG.
NEAR replenishment of 30 M (MC IPA 2016): leverages 140 M of EBRD & KfW loans.

6. EE: Investments & Achievements

7. Energy and Emission Savings & Potential

8. IPA Budget

10. Sustainable market for energy efficiency in the Western Balkans
REEP is an integrated package of finance, technical assistance and policy dialogue, implemented jointly with the Energy Community Secretariat
Objective
Sustainable market for energy efficiency in the Western Balkans
Window 2 Intermediated financing
&
Window 3
Direct financing
WeBSEFF II
€92m financing + €14.5m grants
Credit line for local FI
For smaller scale EE & RE projects
For both public & private sector borrowers, including ESCOs
Grant funds support TA and investment incentives.
WeBSEDFF (extension)
€50m financing + €5.75m grants
Direct financing facility
Medium scale RE and EE improvements in industrial enterprises
For private sector borrowers, including ESCOs.
Window 1
ESCO support
&
Policy dialogue
Energy Service Companies (ESCO)
€5m grants
Legislative support
Technical project preparation
Policy dialogue
€1m (EWBJF) + €1m (EBRD & SIDA)
NEEAP and EPBD
Utility EEO
Procurement of EE goods

11. REEP Plus Overview New: REEP Plus Objective
Sustainable market for energy efficiency in the Western Balkans
Direct Lending - Municipalities
€20m financing + €4.5m grants (EU IPA + Other Donors)
Direct loans provided to the State, City or Municipal Companies, under guarantee of the City or the State
Focus on Public Buildings (schools, hospitals, gov. buildings)
Supported by capital expenditure grant co-financing and TA
Window 4
Direct Lending to Municipalities
Credit lines to Private Enterprises, Public & Residential Sectors via
Partner banks
€108m EBRD & KfW financing + €27.05m grants (EU IPA + Other Donors)
Financing green economy investments via local FI
For residential sector (EBRD)
For SME and Municipal sectors (KfW)
Grant funds support TA and investment incentives
EBRD Direct Lending
€30m (EBRD) financing + €1m grants (EU IPA + Other Donors)
Direct lending to Private sector borrowers
Medium scale RE and EE improvements in industrial enterprises
Technical assistance for project assessment and monitoring
May be expanded to include risk-sharing
Window 2
Credit lines for Private, Public and Residential Sectors via Partner Banks
&
Window 3
Direct Lending
Sustainability projects including ESCOS & Small Scale Renewables
Energy Service Companies (ESCO) development
€3m grants (EU IPA + Other Donors)
Technical assistance to support the preparation of tender documentation for ESCO projects
Policy dialogue
€2.5m grants (EU IPA)
Supporting 2nd and 3rd NEEAP implementation and transposition of EED and EPBD
Window 1
Market Development
&
Policy dialogue

12. PROJECTS AND INVESTMENTS
Incentive grants address barriers regarding pricing and credit risk:
Reward energy, CO2, and resource savings
Make technologies with high (upfront) costs affordable
Address capital and especially long-term finance gaps
Address first-mover risk in the absence of track record in the sector
Role of Financing
PROJECTS AND INVESTMENTS
Working with governments to support the development of a strong institutional and regulatory framework that incentivises EE and RE
TECHNICAL ASSISTANCE
POLICY DIALOGUE
Technical assistance to overcome barriers; includes:
market analysis,
energy audits,
training
awareness raising
[Video: REEP, Plum Factory]

17. "Passport" for EE policy and investments in the WB6:
Case for EE investment in the region
Evolving policy framework
Existing coordination mechanisms
Review of past and current efforts
Achievements in terms of energy savings and CO2 reductions, both in gross terms and relative to regional and national targets
Role of incentives in EE finance
Obstacles on channelling EE investments
Review of the two key existing facilities
GGF (Green for Growth Fund)
REEP (Regional Energy Efficiency Programme)
Other EE stakeholders in the region

18.
Thank You!