1. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ Bulgarian policy for improving EE in buildings– facts by October 2009

2. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 2 CONTENTS Current status- Country EE profile Legal acts EE measures in residential and service sectors Concrete facts from EE audits in public sector buildings

3. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 3 Overview Over the period 1997 to 2006 the energy efficiency index (ODEX) for all sectors decreases by 13 % in Bulgaria compared to 11 % for the EU-27. This improvement is due, largely, to the industrial sector. In the same way, the decrease in the energy intensity of the Bulgarian economy as a whole is due to a great extent to the decrease of energy intensity in industry

4. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 4 Households Between 1997 and 2006, energy efficiency of the household sector improved by 16 % and this happened in a situation of considerable growth of private households consumption. Bulgarian households increased the energy efficiency of consumption and the effect of this improvement is used almost entirely for improvement of heating comfort, wider use of electric appliances, air conditioning etc. The improvement of the ODEX in this sector is a result of different opposed processes:  improved energy efficiency in buildings;  increased thermal comfort;  increased use of household electric appliances;  increased share of solid fuels (wood and coal) for heating.

5. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 5 Energy consumption of households

6. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 6 Energy consumption of services

7. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 7 Energy intensity of households and services in Bulgaria

8. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 8 Unit consumption for heating (per sq. m with climatic corrections) in the residential buildings

9. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 9 Energy consumption in households per capita

10. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 10 Conclusions from the analysis of energy efficiency trends in buildings (households and services) Results of the high rates of economic growth in the period 1997-2007: improvement of the thermal comfort in residential dwellings and public buildings (schools, hospitals etc); increased use of electrical appliances in households; increased use of air conditioning of residential dwellings and public buildings. Growth of the energy consumption in households toward average EU level is result of the above mentioned trends and increased role of energy saving in buildings to limit this growth.

11. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 11 Conclusions from the analysis of energy efficiency trends in buildings (households and services) The energy consumption of sector “Households” was reduced from 2265 ktoe in 1997 to 2073 ktoe in 2007 г., and energy intensity of the sector improved by more than 4 % per year. In sector „Services” the energy consumption increased with 53 % over the period, from 587 to 899 ktoe, and the energy intensity improved by 1 % per year. The impact of the growth of energy prices and the already implemented energy efficiency measures are not enough in the sector of “Services” and in this sector additional measures and efforts are needed for better use of the potential for energy saving.

12. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 12 Energy Efficiency Policy Measures- main executive authority The Energy Efficiency Agency (EEA) is an executive Agency (governmental institution) to the Ministry of Economy, energy and tourism, founded on the bases of the New EE act since November 2008. Web-page: www.seea.government.bgwww.seea.government.bg

13. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 13 Legislative documents for promoting and implementing EE in building

14. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 14 Recommended further actions – adoption of new Energy Efficiency Act – November 2008 The new EEA contains for EE in buildings the following: Requirements for all new or renovated buildings to comply with energy performances standards and to allow the use of RES, district heating, heat pumps. Extended scope of buildings with mandatory certification – obligatory energy audit and certification of all existing buildings with more than 1000 sq.m useful area; Obligatory implementation of the energy saving measures prescribed in the energy audits; Requirements for all owners of buildings with useful area more than 1000 sq.m. to draw up plans for improvement of energy efficiency and to implement this plans. Individual targets for energy saving for all owners of buildings with more than 1000 sq.,m. area. Periodical obligatory inspections for energy efficiency on hot water boilers for heating and air conditioning systems in buildings,.

15. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 15 Energy passport /certificate of buildings The energy passport (label) is inseparable part of the technical passport of the building and is introduced with Regulation 5 for the technical passports of construction works from 28 December 2006. The energy passport of a new construction is established by the construction consultants and contains the energy performance parameters, corresponding to the normatives and requirements for EE at time of commissioning of the building. The energy certificate of an existing building is issued after a detailed EE audit is carried out by physical or legal entities, registered in the EEA register.

16. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 16 Energy passport/certificate of buildings Limits Energy consumption class Verbal determination of building energy demands EP ≤ 0,5 ЕР max,r AHigh EE 0,5 ЕР max,r <ЕР≤ ЕР max,r B ЕР max,r < EP ≤ 0,5(ЕР max,r + ЕР max,s ) C 0,5 (ЕР max,r + ЕР max,s )< EP ≤ ЕР max,s D ЕР max,s < EP ≤ 1,25 ЕР max,s E ЕР max,s < EP ≤ 1,5 ЕР max,s F 1,5 ЕР max,s < EPG High energy expenses

17. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 17 Energy Efficiency Policy and Measures in buildings Energy audits and certification of public and private buildings and building tax exemption (Energy Efficiency Act) New norms for insulation (1999) and energy performance standards for buildings (2005). Individual billing in multi-family buildings with district heating National Strategy for financing building insulation 2006 – 2020 Residential Energy Efficiency Credit Line (REECL Building tax exemption

18. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 18 Evaluation of the impact of some measures in buildings Energy audits and certification of existing public and private buildings. Till October 2009 2963 buildings are reported to EEA to be audited including: 785 state (obligatory certification); 1096 municipal (obligatory certification); 1082 private (voluntary certification for tax exemption) Expected annual energy savings 68 845 toe/y after implementation of the proposed in the energy audits measures including: 15 062 toe/y in state buildings; 52 539 toe/y in municipal buildings 1 751 toe/y in private buildings. Investment needed for energy saving measures implementation is 460,7 mln. lv. (including 361,3 mln. lv. in state and municipal buildings).

19. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 19 Evaluation of the impact of some measures in buildings New norms for insulation and energy performance standards for new buildings (static baseline 1991): Evaluation of the improvement of specific energy consumption New norms for insulation (1999) – 30 kWh/sq.m; Energy performance standards (2005) – 45 kWh/sq.m; The new completed buildings useful area: 1999 – 2004 - 3 997 815 sq.m. 2005 – 2007 – 3 081 771 sq.m. Expected annual energy savings till the end of 2007 - 22 276 toe/y.

20. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 20 Evaluation of the impact of some measures in buildings National Strategy for financing building insulation 2006-2020 Number of buildings and dwellings with improved insulation 508 state buildings with 2 514 600 sq.m. useful area; 3454 municipal buildings with 10 216 932 sq.m. useful area; 65 981 residential dwellings with 48 823 575 sq.m. useful area. Expected investment: 147,1 mln. lv. for state buildings; 597.7 mln. lv. for municipal buildings; 2 490 mln. lv. for residential dwellings Expected energy savings 178 536 toe/year after implementation of the strategy (to 2020) including: in state buildings – 10 382 toe/year in municipal buildings – 42 179 toe/year in residential dwellings - 125 975 toe/year 178535 toe

21. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 21 Evaluation of the impact of some measures in buildings Individual billing in multi-family buildings with district heating The impact of this measure is high and the improvement of energy efficiency is evaluated at not less than 20 % of the district heating consumption without deterioration of the thermal comfort. The consumption of district heating is 420 000 toe in 2006, and the energy saving is evaluated at 84 000 toe/year. Residential Energy Efficiency Credit Line (REECL) European Commission and EBRD have developed a € 50 million Residential Energy Efficiency Credit Line (REECL) to provide loans (including 20 % grants) to households for specific energy saving measures. To date, the REECL Programme numbers are: 16546 energy saving projects in households; Personal loans totalling 48 294 477 mln. lv. including incentive grants amounting to 8 393 112 mln. lv.; Energy savings – 9 944 toe/year;

22. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 22 Building tax exemption The provision for buildings tax exemption is included in the Local Taxes and Fees Act (last amendment from 6 July 2007). The owners of buildings, having obtained a certificate category A, issued in the terms under Energy Efficiency Act, are exempt from building tax:  for the duration of 7 years, after the year of certificate issuing;  for the duration of 10 years, after the year of certificate issuing if RES are used in the energy consumption of the building. The owners of buildings, having obtained a certificate category B, issued in the terms under Energy Efficiency Act, are exempt from building tax:  for the duration of 3 years, after the year of certificate issuing;  for the duration of 5 years, after the year of certificate issuing if RES are used in the energy consumption of the building.

23. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 23 Recommended further actions and measures in buildings Financial support from the state budget for the implementation of the National Strategy for buildings insulation. New energy performance requirements for new buildings (and for renovation of existing buildings). Special measures for low-income households. Energy efficient public procurement practices. Incentives for the employed in service sector for energy saving. Provision of relevant information to the final customers for the:  actual energy consumption and energy prices;  available energy efficiency improvement measures and practices;  energy performance (labels) of buildings, electrical appliances, boilers, air conditioners.

24. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 24 Concrete facts from EE audits in public sector buildings Number of buildings with audits completed and certifications received by October 2009 HeadingMeasure Total number of constructions with energy audits passed 2 963 Certificates issued class “А”/“B1003/45 Buildings with ESM stipulated1 983 Target oriented programme year 2006, supported by the state budget 250 Target oriented programme year 2007, supported by the state budget 369 Target oriented programme year 2008, supported by the state budget 562 Investments needed for the implementation of ESM 460,7 Million leva Energy savings expected800.7 GWh/year Saved CO2 emissions306,96 Thousands tons/year

25. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 25 Results of mandatory audits on buildings process - ratio of audited to non-audited mandatory buildings by October 2009

26. АГЕНЦИЯ ПО ЕНЕРГИЙНА ЕФЕКТИВНОСТ 26 Snezhana Todorova, Dipl. Eng. Director in Energy Efficiency Agency Phone:00 359 2 915 40 13 E-mail: STodorova@seea.government.bgSTodorova@seea.government.bg Thank you for your attention !