FINANCING ENERGY EFFICIENCY
PROJECTS FOR SMEs
Ministry of Economy and Energy
Managing Authority of OP "Competitiveness"
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Bulgarian Energy Strategy 2020
Bulgaria 2020 targets
 25 % improvement in energy efficiency compared to 2005
levels
•
50% decrease in energy intensity
 16 % share of energy consumption produced from
renewable sources
 20 % reduction in greenhouse gas emissions from 1990
levels
High potential for energy efficiency improvement identified in:
•energy production / transmission / distribution
•final energy consumption: residential sector,
transport,
industry and services
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Energy Intensity in selected EU Countries
[kgOe/1,000 €]
Bulgaria has highest
rate within EU-27
1.400,00
1.200,00
•Disadvantage for
Bulgarian SMEs
1.000,00
800,00
600,00
•Lack of
competitiveness
400,00
200,00
0,00
2000
•High expenses for
energy services
2001
2002
2003
2004
2005
EU - 27
Bulgaria
Germany
Austria
Romania
Croatia
European Regional Development Fund
EUROPEAN UNION
Investing in your future
2006
Greece
2007
2008
2009
Hungary
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007 – 2013
Energy Efficiency and Green Economy
Programme
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Framework
• Joint Initiative between MoEE and EBRD
• Promotion of Sustainable Energy Solutions for SMEs
• Blending of EU Structural Funds and Commercial Lending in one
Procedure
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Components
• Grant
Component: EUR 150 Mio.
• Loan Component: EUR 150 Mio.
• Technical Assistance Component
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Eligible Applicants and Projects
 Only SMEs are eligible
Maximum of 250 employees, turnover of max. EUR 50 Mio. and/or total assets of
max. EUR 45 Mio. (according to EU definition / Bulgarian Law on SMEs)
 Energy Efficiency Projects
Projects which result in a reduction of energy (and/or fuel consumption) against a
baseline or per unit of production
Energy-Audit Projects must achieve a minimum of 10% energy savings!
 Renewable Energy Projects
Projects which generate energy only for the own use of enterprises (solar thermal,
geothermal and heat pumps)
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Implementation Approaches
There are two different approaches:
Technology-driven
Approach
Energy Audit
Approach
Technology-driven Approach: Small-scale projects specified in the „List of
Eligible Material and Equipment“
Energy-Audit Approach: For larger and more complex projects, based on the
results of a simplified Energy Audit
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Grant Funding
Project Type
Grant Intensity (% of total eligible
costs)
Technology Driven Projects (LEME)
30%
Energy Audit Driven Projects
40%
Bonus grant for the following features:
 LEME projects based on a voluntary energy audit
 Projects involving CHP
 Renewable energy projects covering the own needs of the
enterprise
 Fuel switch projects
 Introduction of an Energy Management System
 Projects implemented in priority economic sector
10% (for each feature)
• Maximum grant intensity is 50% of eligible costs
• Maximum grant amount per project under „Regional Aid“ scheme is EUR 1 Mio.
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Functions Allocation
Project Assistant
Participating
banks
Contracting
Authority
Technical Eligibility
Check
Financial Eligibility
Check
Eligibility of Applicant
Check
•
Project eligibility
•
State Aid Compliance
•
Eligibility of
expenditures
•
Energy audit check
•
Procurement Check
Information and
counseling services to
applicants
Financing with own
funds: Confirmation
of availability of
sufficient funds
Loan financing: Loan
approval or Term
Sheet
Double Financing
Check
Verification
Assistant
Project Monitoring
Verification of products
and services delivered
•
On-the-spot visit
•
Final report Check
LEME maintenance
PBs provide loans to
applicants/beneficiaries
at market rates
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Project Cycle
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
State of implementation
• Initial project preparation completed: 750+ projects, well above
programme budget
• Submission mostly in the last two months before programme closure
• Preference for Energy Audit Projects – scale and flexibility
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Operational Progamme
„Innovations and Competitiveness“
2014-2020
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Programming framework
Common Strategic
Framework for the period
2014-2020
Priorities for funding
recommended by European
Commission Services
2. Innovation-friendly
business environment
Supporting business
development
Facilitating access to
finance and advanced
business services for SMEs
and start-ups
Supporting private R&I
investment, infrastructure
and capacities
4. Environment-friendly and
resource-efficient economy
Promoting a low-carbon
economy, energy efficiency
and renewable energy
sources
Thematic objective 1.
Strengthening research,
technological development and
innovation
Thematic objective 3.
Enhancing the competitiveness
of SMEs
Thematic objective 4.
Supporting the shift towards a
low-carbon economy
Thematic objective 6.
Protecting the environment and
promoting resource efficiency
OP „Innovations and
Competitiveness “
PRIORITY AXIS 1:
„Entrepreneurship, export
and production potential“
1.1. Technological
development and innovations
1.2. Competitiveness and
productivity of enterprises
PRIORITY AXIS 2:
„Green and effective
economy“
2.1. Green economy and
resource efficiency
2.2. Energy technologies and
energy efficiency
PRIORITY AXIS 3:
„Technical assistance“
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Priority axis 1: Entrepreneurship, export and production potential
Technological development and innovations - „smart“ growth (TO 1 of the CSF)
 development and embedding of new products, processes and business models in
innovative enterprises
 development of mutual initiatives for researches and innovations
 support for innovative starting enterprises
 development of infrastructure for innovations and researches, etc.
Competitiveness and productivity of enterprises - fast growing (TO 3 of CSF)
 renovation and excellence of technologies aiming to improve productivity and
increasing efficiency of resources used through introduction of leading technological
solutions
 introduction of new ICT-based services and applications
 improvement of manufacturing processes in enterprises
 support for development of clusters
 support for fast growing enterprises, etc.
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
Priority axis 2: Green and effective economy
Green economy and resource efficiency – sustainable growth (TO 6 of the
CSF)

embedding of high-technology solutions for optimization of production processes
and reduction of utilization of raw materials

embedding of contemporary technologies for input of wastes as raw material in
new production; wasteless technologies; innovation production materials;
technologies for production of "green products“, etc.
Energy technologies and energy efficiency - sustainable growth (TO 4 of the
CSF)

investments in technology solutions for optimization of production processes
resulting in energy savings

investments in renewable energy technologies for energy production, incl. CHP

consultancy services for energy management systems development

construction and repair works in buildings
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013
THANK YOU FOR YOUR ATTENTION!
European Regional Development Fund
EUROPEAN UNION
Investing in your future
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007-2013