1. Financing Residential Energy Efficiency in South-East Europe
Gianpiero Nacci
Head of Sustainable Resources Investment, EBRD
Residential Energy Efficiency in South-East Europe – Challenges and Opportunities, Brussels
20th June 2017

2. What is the EBRD
Multilateral financing institution established in 1991 to support transition to market economies
Owned by 65 countries, the EU and the EIB
€30 billion capital base
€41 billion portfolio
€8.9 billion average annual business in the past 3 years
3 key operational principles
Sound banking
Transition impact
Environmental sustainability
EBRD region of operations:
Caucasus and Eastern Europe
Central Asia and Mongolia
Central and Eastern Europe
Cyprus
Greece
Southern and Eastern Mediterranean
Turkey
Western Balkans
Russian Federation

3. Green Economy Transition (GET)
40%
Green finance in EBRD annual business by 2020, from a 2015 level of 30%
€ 4 billion
Target annual EBRD green business by 2020
€ 22 billion
Target cumulative EBRD green business
The environment and sustainability are central to the EBRD’s
EBRD adopted its Green Economy Transition approach in October 2015.
The GET targets:
40% of EBRD’s annual business to be Green by 2020
Approximately equivalent to € 4 billion
Since 2006, EBRD has provided over € 22 billion in Green finance (through 2016)
@EBRD #EBRDgreen #GreenCities

4. EBRD’s green financing
€22.2 billion
cumulative EBRD green
financing
1,271 projects
with climate components
33%
of 2016 business

5. EBRD’s experiences in financing residential energy efficiency
since 2006
Annual Green impact
441
1385
GWh of primary energy
saved per year €
million
invested in residential buildings energy efficiency improvement across
349,000 38
projects,
and accounts for
tonnes CO2 eq.
reduced per year
22.4%
of EBRD’s total green investment in buildings.

6. Bulgaria: Residential Energy Efficiency Credit Line (REECL)
Through REECL, the EBRD offers credit lines to local partner financial institutions in Bulgaria for on-lending to individuals and housing associations investing in residential energy efficiency.
REECL Key Facts
Financing framework: €110 m
€50 million ( )
€40 million ( )
€20 million (2016- )
KIDSF support of €24.6 million for incentives and technical assistance
Amount signed with PBs: €99.4 m
Number of projects: 53,345 (~ 8,000 per year)
Energy savings: 240 GWh per year
Carbon reductions: 249,000 tons CO2 per year
EBRD
Participating
Banks (PBs)
Sub-Borrower
(SBs) €
Credit Line
Loan Agreement
Confirms
Sub-Project compliance;
Verifies implementation
KIDSF
Funded Contract
Training
and Marketing
Support
Project
Consultant

7. REECL: Case study After: 146 kWh/m2.a Costs: EUR 28,000 IRR: 16%
OFFICIAL USE
REECL: Case study
After: 146 kWh/m2.a
Costs: EUR 28,000
IRR: 16%
Insulation of external walls of the two main facades
Replacement of windows in apartments
Before: 178 kWh/m2.a
Pazardjik, 19 D.Debelianov str.
Apartment building of 10 apartments

8. Launch of “REEP Plus” in 2017
REEP Plus 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 4
Direct Lending to Municipalities
€20m direct EBRD financing €4.5m grants (EU IPA + Other Donors)
Direct loans to the State, cities or municipal companies
Focus on public buildings EE
Capital expenditure grant co-financing and TA
Window 2 Intermediated financing
&
Window 3
Direct financing
€108m EBRD & KfW financing via FI €27.05m grants (EU IPA + Other Donors)
SME and public sector lending (KfW)
Residential sector lending across all 6 WB countries (EBRD). €1.8m WBIF, €2.7m Austrian Federal Ministry of Finance for TC
€30m direct EBRD financing €1m grants (EU IPA + Other Donors)
Direct lending for Medium scale RE, EE
Target financing of ESCOs
TA for project preparation
Window 1
ESCO support
&
Policy dialogue
ESCO development
€3m grants (EU IPA + Other Donors)
TA for ESCO projects and tenders preparation
Policy dialogue
€2.5m grants (EU IPA)
Key focus on residential sector regulations

9. Conclusion
Western Balkans’ residential energy efficiency potential unrivalled
Significant opportunities to capture this potential
Credit lines that engage private banks key to capturing this potential

10. Head of Sustainable Resources Investment EBRD
Gianpiero Nacci
Associate Director
Head of Sustainable Resources Investment
EBRD
One Exchange Square London, EC2A 2JN United Kingdom
29 March 2017