ENERGY COMMUNITY – TAPPING ON ITS
ENERGY EFFICIENCY POTENTIAL
Energy Community Secretariat
1 June 2015
ENERGY COMMUNITY – TAPPING ON ITS
ENERGY EFFICIENCY POTENTIAL
ENERGY COMMUNITY SECRETARIAT
1 JUNE 2015
Table of Contents
PREFACE
5
EXECUTIVE SUMMARY
6
I. ENERGY COMMUNITY TREATY AND ENERGY EFFICIENCY
9
A. Energy Efficiency: “The First Fuel”!
10
B. Enabling Legal Framework for Energy Efficiency
14
B.1. Working Together - Energy Efficiency Coordination Group
15
B.2. The Implementation of the Energy Efficiency Acquis
15
B.3. Next Steps: Following the European Union’s Energy Efficiency Policy
17
II. FROM LAWS TO INVESTMENTS:
OPPORTUNITIES FOR ENERGY EFFICIENCY FINANCING
19
A. Overview
20
B. Main Financing Initiatives and Technical Assistance Programmes
22
B.1. Western Balkans Investment Framework
22
B.2. Regional Energy Efficiency Programme for the Western Balkans
(REEP) and Showcases
24
B.3. The Green for Growth Fund Southeast Europe (GGF) and Showcases
29
B.4. Neighborhood Investment Facility (NIF): Eastern Partnership Countries
33
B.5. Eastern Europe Energy Efficiency and Environmental
Partnership (“E5P”)
33
B.6. INOGATE
34
B.7. The World Bank’s Programmes and Showcases
35
B.8. Kreditanstalt für Wiederaufbau (KfW)
40
B.9. The European Investment Bank (EIB)
41
B.10. United States Agency for International Development
42
B.11. United Nations Development Programme
43
B.12. Gesellschaft für Internationale Zusammenarbeit (GIZ)
45
GLOSSARY
Energy Community Secretariat
Am Hof 4
1010 Vienna, AUSTRIA
Tel: + 431 535 2222
Fax: + 431 535 2222 11
Internet: www.energy-community.org
Twitter: https://twitter.com/Ener_Community
E-mail: contact@energy-community.org
Editors: Violeta Kogalniceanu, Svitlana Karpyshyna,
Heli Lesjak, Barbora Jaksova, Borko Raicevic
Layout: Medium d.o.o.
Images: www.istockphoto.com, www.fotolia.com,
Energy Community Secretariat and the IFIs
2 | ENERGY COMMUNITY SECRETARIAT
48
FIGURES
Fig. 1: The Multiple Benefits of Energy Efficiency
10
Fig. 2: Final Energy Consumption in 2013 (in toe/capita)
11
Fig. 3: Energy Intensity of the Economy in 2013
11
Fig. 4: Energy Intensity in 2013, adjusted to PPP
12
Fig. 5: Energy Community Donors Community and Partners
15
Fig. 6: Transposition of the Energy Service Directive in the Energy Community
16
Fig. 7: Transposition of the Energy Performance of Buildings Directive
in the Energy Community
16
Fig. 8: Transposition of the Energy Labelling Directive in the Energy Community
18
Fig. 9: Energy Efficiency Facilities in the Western Balkans Q1 2015 (million EUR)
20
Fig. 10: Energy Efficiency Financing in the Western Balkans: How is it used?
21
Fig. 11: Overview of the Regional Energy Efficiency Programme (REEP)
in the Western Balkans
24
Fig. 12: GGF Technical Assistance Projects per Approved Types
30
Fig. 13: GGF Investment Portfolio
30
TABLES
Table 1: Acquis on Energy Efficiency
14
Table 2: WBIF Grants for Investment Preparation
23
Table 3: WeBSEFF I and II financed Energy Efficiency Projects in the
Contracting Parties
28
Table 4: Western Balkans Sustainable Energy Direct Funding Facility
Projects in the Contracting Parties
29
Table 5: GGF Development Performance on Sub-loan Disbursements
30
Table 6: GGF financed Projects in the South East European Contracting Parties
31
Table 7: Approved E5P Projects in Ukraine
34
Table 8: World Bank Energy Efficiency Projects in the Energy Community
38
Table 9: KfW Energy Efficiency Projects in the Energy Community
40
Table 10: EIB Support per Contracting Party
41
Table 11: EIB’s Energy Efficiency and Renewable Energy Investment Projects
in the Energy Community
41
Table 12: USAID financed Energy Efficiency Projects in the Energy Community
42
Table 13: UNDP financed Energy Efficiency Projects in Bosnia and Herzegovina
and Serbia
44
Table 14: GIZ’s Bilateral Energy Efficiency Projects in the Energy Community
46
ENERGY COMMUNITY SECRETARIAT | 3
About Us
The Energy Community is an international organisation
dealing with energy policy founded by the Energy Community Treaty, which entered into force in July 2006.
The Parties to the Treaty are the European Union and eight
Contracting Parties from South East Europe and the Black Sea
region: Albania, Bosnia and Herzegovina, Kosovo*, former Yugoslav Republic of Macedonia, Moldova, Montenegro, Serbia and Ukraine. Georgia, Armenia, Norway and
Turkey participate as Observers.
The Energy Community’s mission is to extend the EU internal
energy market to South East Europe and beyond on the basis
of a legally binding framework. The overall objective of the
Energy Community Treaty is to create a stable regulatory and
market framework in order to:
• Attract investment in power generation and networks to
ensure stable and continuous energy supply that is essential
for economic development and social stability;
• Create an integrated energy market allowing for cross-border energy trade and integration with the EU market;
• Enhance the security of supply;
• Improve the environmental situation in relation with energy
supply in the region; and
• Enhance competition at regional level and exploit economies
of scale.
For further information about the Energy Community, please visit our website: www.energy-community.org.
* This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.
4 | ENERGY COMMUNITY SECRETARIAT
Preface
This year’s entry into force of the Third Energy Package in the
Contracting Parties will see the further liberalisation of the
electricity and gas markets in the region. This may impact retail
energy prices, and energy efficiency is the solution to keep or
lower the consumers’ energy bills, while allowing the current
unsustainably low energy prices to become more cost reflective, without jeopardising consumers’ welfare. In countries with
a relatively high percentage of the population suffering from
energy poverty, energy efficiency is ever more important.
Nowhere else in Europe does energy efficiency have such great
potential than in the Energy Community Contracting Parties Albania, Bosnia and Herzegovina, Kosovo*1, former Yugoslav
Republic of Macedonia, Moldova, Montenegro, Serbia and
Ukraine. While being a sleeping beauty in the past, energy efficiency is now slowly beginning to transform the economies and
ways of life in these countries. Concerns over possible shortage
of energy supplies in winter 2014/2015 have underlined further
the importance of energy efficiency as the means to reduce
dependence on imported energy and gave countries such as
Ukraine fresh impetus to embark on ambitious reforms. While
the pace varies, all Contracting Parties are making progress in
implementing the energy efficiency legal framework given by
the Energy Community Treaty.
In the Energy Community, liberalisation of the energy markets
and implementation of energy efficiency measures go hand
in hand. The Energy Community’s Secretariat has conducted
numerous missions to each Contracting Party to raise awareness of the benefits of energy efficiency and provide national
authorities with the relevant knowledge and expertise to undertake the necessary reforms. While it is very important to
have a conducive legal framework, it is certainly not enough!
This is why it is essential to team up with international financial
institutions, bilateral donors and other organisations to take
projects from ideas to implementation.
While it is important to recognise the progress that was
achieved to date, much more remains to be done to attain EU
energy efficiency standards. It is thus imperative that the Energy
Community’s energy efficiency legal framework continues to
evolve. The forthcoming adoption by the Energy Community
Ministerial Council of the EU’s 2012 Energy Efficiency Directive
will significantly contribute to this goal. In October 2014, leaders of the European Union agreed to increase energy efficiency
by at least 27% by 2030. The Energy Community Contracting
Parties should follow the EU’s energy efficiency policy with
similar determination.
Janez Kopač
Director of Energy Community Secretariat
1*
This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence.
ENERGY COMMUNITY SECRETARIAT | 5
Executive Summary
This publication represents the Energy Community Secretariat’s
initiative driven by the wish to “demonstrate” in facts and
figures that not only does energy efficiency matter, but it is
starting to be taken seriously by an increasing number of stakeholders from governments and public institutions to companies
and the general public. Significant financing and technical assistance packages are being offered by the European Commission, International Financial Institutions and other multilateral
and bilateral donors.
While this publication neither aspired, nor probably achieved,
to be an exhaustive library of all projects, programmes and
investment credit lines that support energy efficiency on the
demand side and small renewable energy applications on the
supply side, it intends to demonstrate that “something positive” is happening.
Energy efficiency legal framework is progressing
Not only has the energy efficiency acquis been adopted and
constantly updated in the Energy Community, including directives on energy efficiency as recently as 2015, energy performance in buildings and labelling of energy related products, it
also started to bear fruit!
Just to highlight the most recent developments: In May 2015
Serbia adopted a Regulation enabling procurement of energy
efficiency in municipal services like street lighting, thermal
rehabilitation of public buildings, etc. using Energy Service
Companies. Montenegro and Serbia prepared Rulebooks on
6 | ENERGY COMMUNITY SECRETARIAT
Public Procurement of Goods and Services, which also use energy efficiency criteria. Albania, Kosovo* and Ukraine prepared
laws on energy efficiency in buildings, which include provisions
on certification of buildings, minimum energy performance
standards, heating and cooling systems inspections and so on.
Investments in energy efficiency and small renewable
energy applications
There is a significant offer of financing facilities in the form of
blending grants and loans mechanisms, different funds and
straightforward credit lines by International Financial Institutions with a component of technical assistance embedded. In
2015 there was about 700 million EUR available for the Western Balkan countries alone, of which only approximately onethird is being used. Moldova and Ukraine are participating in
the European Union’s neighbourhood investment instruments,
including the Neighbourhood Investment Facility and Eastern
Europe Energy Efficiency and Environment Partnership (E5P).
A large number of purely technical assistance programmes for
investment preparation and the removal of investment barriers
are and will continue to be available, both on multi-beneficiary
and bilateral level.
Nevertheless, scaling up energy efficiency in all economic sectors, including industry, buildings, transport and services, will
require that additional barriers are removed and a large enough
market for energy services is developed.
Key Messages
1. Acknowledging energy efficiency’s place as the “first fuel” is
a significant step forward. Energy efficiency markets deliver
goods and services that reduce the energy required to fuel
our economies.
2. Energy efficiency requires an integrative approach including a solid legal and regulatory framework and well trained
and staffed energy efficiency implementation bodies (agencies, ministries, statistical offices, etc.), innovative financing
and price and tariff reforms.
3. Energy efficiency i.e. reducing energy consumption is ever
more important during a time when energy prices have risen
and will continue to rise significantly across the Energy Community countries.
5. Large amounts of public finance are being committed
to energy efficiency. For example, the European Bank for
Reconstruction and Development, the European Investment
Bank (EIB), the World Bank and Germany’s public investment
bank KfW are becoming more and more engaged in providing affordable lending terms to large scale energy efficiency
programmes and financing facilities and funds.
6. Another important channel for public finance to energy efficiency is through the development aid programmes of
bilateral and multilateral agencies.
7. Contracting Parties will have to increase their engagement in
energy sector reforms and market penetration of energy
efficient technologies, and use energy efficiency as means
to reduce energy bills and thus the risk of energy poverty.
4. Using credit lines from International Financial Institutions,
energy efficiency is gradually becoming an established financial market segment. Energy efficiency financing in
the Western Balkans is developing from being a niche to a
more established financial market segment. This is, in part,
the result of the availability of a greater range of financial
products, models and intermediaries to facilitate investment.
ENERGY COMMUNITY SECRETARIAT | 7
8 | ENERGY COMMUNITY SECRETARIAT
I. ENERGY COMMUNITY TREATY AND ENERGY EFFICIENCY
ENERGY COMMUNITY SECRETARIAT | 9
I. Energy Community Treaty and Energy Efficiency
A. ENERGY EFFICIENCY: “THE FIRST FUEL”!
More and more often these days, European politicians call energy efficiency the “first fuel”2.
International Energy Agency believes that: “As an energy resource, energy efficiency has the unique potential to simultaneously contribute to long-term energy security, economic
growth, and even improved health and well-being; in particular
it is a key means to reduce greenhouse gas emissions. By reducing or limiting energy demand, energy efficiency measures
can increase resilience against a variety of risks, such as energy
price rises and volatility, stress on energy infrastructure, and
disruptions to energy supply systems”.3
For the Energy Community Contracting Parties, even more
than for the European Union Member States, energy efficiency
gives a perfect example of a win-win solution. When properly
supported by a solid legal and institutional framework and
backed up by well designed and implemented policy measures
and programmes, increased energy efficiency brings about a
multitude of positive effects on competitiveness, environment,
security of energy supply and economic development in general
(see Fig. 1 below).
Figure 1: The Multiple Benefits of Energy Efficiency
Asset
values
Energy
savings
GHG
emissions
Disposable
income
Energy
security
Energy
delivery
Public
budgets
Energy efficiency
improvement
Resource
management
Energy
prices
Macroeconomic
impacts
Local air
pollution
Industrial
productivity
Employment
Health and
well-being
Poverty
alleviation
Source: International Energy Agency website /Energy Efficiency
At the same time, Contracting Parties are facing more barriers to advancing energy efficiency than the European Union
Member States. These are to a certain extent linked to the
“inherited” command economy energy inefficiency in most
production and consumption sectors. An economic structure
with a higher share of intensive industry combined with lower
energy consumption and income per capita is rather common
2
3
Energy Efficiency Financial Institutions Group (“EEFIG”) Report 2014.
IEA, IEA journal, Issue 6, ‘Energy efficiency, measured finely’, 2 May 2014
10 | ENERGY COMMUNITY SECRETARIAT
to the Contracting Parties. The average energy consumption
per capita in 2013 in the Contracting Parties was 43% lower
than the EU 28 average (Fig. 2). Moreover, the double dip
recession in 2009 and 2012, the devastating floods in Serbia
and Bosnia Herzegovina, the weak EU recovery and the crisis
in Ukraine took the attention from investments in efficiency
increase, to recovery.
Fig. 2: Final Energy Consumption in 2013 (in toe/capita)
Final Energy Consumption in 2013 (in toe/capita)
2.5
EU-28
2.0
1.5
1.421
1.5
1.120
1.161
Montenegro
Serbia
1.248
0.906
0.716
0.700
0.835
0.567
0.5
0
Albania
Bosnia and
Herzegovina
Kosovo*
FYR of
Macedonia
Moldova
Ukraine
Energy
Community
Source: Energy Community Secretariat, EUROSTAT
Another efficiency indicator, although lately considered as being not so reliable, was and still is the energy intensity of the
economy (Fig.3).
Fig. 3: Energy Intensity of the Economy in 2013
Energy Intensity of the Economy
(Gross inland consumption/gross domestic product in kgoe/1000 USD)
700
646
600
522
500
409
400
334
300
200
331
255
290
235
203
100
EU-28
0
Albania
Bosnia and
Herzegovina
Kosovo*
FYR of
Macedonia
Moldova
Montenegro
Serbia
Ukraine
Energy
Community
Source: Energy Community Secretariat, EUROSTAT, IMF
ENERGY COMMUNITY SECRETARIAT | 11
Energy intensity is calculated as the gross inland consumption
of energy divided by gross domestic product and indicates the
amount of energy used to produce one unit of GDP (expressed
in toe per million USD). Whilst the value varies widely among
countries, it strongly correlates with the level of industrialization and the economy’s mix of services and manufacturing.
Undoubtedly, also the attention which a country pays to energy efficiency, together with the policies in place, plays an
essential role. In 2013, energy intensity in the Contracting
Parties was six times higher than the average energy intensity
in the European Union. Nevertheless, as mentioned above, the
indicator is currently viewed by experts as less conclusive as it
gives completely different values when the GDP is expressed
in USD at the exchange parity rate or in USD at the power
purchase parity (Fig. 4).
Fig. 4: Energy Intensity in 2013, adjusted to PPP
Energy intensity of the economy, adjusted to PPP
(Gross inland consumption/gross domestic product based on PPP in kgoe/1000 USD)
350
296
300
250
239
196
200
146
150
100
157
139
114
105
86
EU-28
50
0
Albania
Bosnia and
Herzegovina
Kosovo*
FYR of
Macedonia
Moldova
Montenegro
Serbia
Ukraine
Energy
Community
Source: Energy Community Secretariat, EUROSTAT, IMF
Although the difference in energy intensity when calculated
with GDP adjusted to power purchase parity between the Contracting Parties and the European Union Member States is less
high, it remains at a factor of 2.5.
This is mainly due to the fairly obsolete state of the energy
infrastructure, high transformation, transmission and distribution energy losses and also low energy efficiency in the enduse sector, especially in industry and buildings. As shown by
Fig. 2, the Energy Community Contracting Parties consume less
energy per capita that their European Union counterparts. It is
important to stress that this is not an indication of efficiency,
but it rather indicates the lower level of economic development.
Buildings are a sector with significant potential in the Western
Balkans - represented by 50% of total energy consumption
and with an estimated potential for energy savings between
20 to 40%.4
4
5
There is also a significant energy efficiency saving potential in
several other sectors of the Western Balkans:
•
•
•
•
•
•
Transport: 10%
Household sector: 10 - 35%
Public: 35 - 40%
Service sector: 10 - 30%
Industrial and commercial: 5 - 25%
Potential yield (public buildings and private households): 805
million EUR in energy savings by 2020
Moldova and Ukraine share the same level of potential.
According to Eco Ltd., a large number of the residential buildings are in poor condition. Particularly in rural areas, there are
significant numbers of houses that are not completed while
already being inhabited, and which lack external insulation and
proper window sealing. Heating of residences by electricity
is very common throughout the region. In rural areas wood
and coal heating is very common, and wood and coal heating
stoves are generally very inefficient.5
World Bank, Establishing and Operationalizing an Energy Efficiency Revolving Fund, page 2, presented on 15 – 16.05.2014, Vienna
Eco Ltd, Assessment of the Residential Energy Efficiency Investment Potential in the Western Balkans, Executive Summary, March 2015 version, page 2
12 | ENERGY COMMUNITY SECRETARIAT
One other important area that is needed for implementing energy efficiency is the institutional framework, which although
under development remains still rather weak. The legal and
regulatory framework is also still “a work in progress”.
Yet, most probably, one of the biggest barriers for energy efficiency are the regulated, low energy prices, especially in the
residential sector, that do not incentivize efficiency measures.
And yet, despite these low prices, it is estimated that in all of
the Contracting Parties at least 50% of the population spends
more than 10% of their net income on energy – thus falling
6
under the standard definition of fuel poverty6. Hence the lack
of available income for investments in energy retrofitting of
households remains also a significant barrier.
With this rather “gray” picture in mind, the question remains what are we collectively doing to enable, promote,
finance and implement energy efficiency measures and
investments?
The next chapters will try to respond to this question.
Eco Ltd, Assessment of the Residential Energy Efficiency Investment Potential in the Western Balkans, Executive Summary, March 2015 version, page 3
ENERGY COMMUNITY SECRETARIAT | 13
B. ENABLING LEGAL FRAMEWORK FOR ENERGY EFFICIENCY
In 2009, the energy ministers of the Energy Community, the
Ministerial Council, recognizing the importance of energy efficiency, decided to extend the Energy Community Treaty’s
acquis to three EU Directives in the areas of energy end-use
efficiency and energy services, energy performance of buildings
and labelling, (Table 1).
Table 1: Acquis on Energy Efficiency
Acquis on Energy Efficiency
Title of Document
General Implementation
Deadline
Directive 2006/32/EC on energy end-use efficiency and energy services and repealing Council Directive 93/76/EEC
31 Dec 2011
Directive 2010/30/EU on the indication by labelling and standard product information of the consumption of energy and other resources
by energy-related products
31 Dec 2011
Directive 2010/31/EU on the energy performance of buildings
30 Sep 2012
Directive 2006/32/EC on Energy End-Use Efficiency and Energy
Services (ESD) requires the adoption of an indicative energy
savings target of 9% for the ninth year of application of this
Directive and the development of Energy Efficiency Action
Plans (EEAPs). In the European Union, this Directive was repealed in 2014 and replaced with the Energy Efficiency Directive 2012/27/EU (EED). Aligning its energy efficiency policy to
that of the European Union, the Ministerial Council in 2014
concluded that the EED should be adopted by the Energy Community in 2015, with certain adaptations to the specific situation in the Energy Community Contracting Parties.
Directive 2010/31/EU on the Energy Performance of Buildings
(EPBD) provides the legal framework for setting minimum energy performance requirements for new and existing buildings,
introduces buildings certification as well as other measures
related to the heating and cooling systems of buildings.
Directive 2010/30/EU on the Indication by Labelling and Standard Product Information of the Consumption of Energy and
Other Resources by Energy-Related Products (ELD) and the
corresponding implementing legislation establish the legal
framework for labelling of and providing consumer information
regarding energy consumption for energy related products.
© Open Regional Fund – Energy Efficiency (GIZ), The 3rd Energy Efficiency Coordination Group meeting, November 2013, Vienna
14 | ENERGY COMMUNITY SECRETARIAT
B.1. Working Together Energy Efficiency Coordination Group
Recognising the needs for closer and regular cooperation
between the Contracting Parties themselves as well as with
the EU Member States, the Energy Community set up a Task
Force on Energy Efficiency in December 2007. After five years
of successful operation, the Energy Efficiency Task Force was
upgraded to an Energy Efficiency Coordination Group (EECG)
as a broader model of cooperation.
The Coordination Group consists of representatives from ministries and agencies in charge of energy and energy efficiency
issues from all Contracting Parties and three observer countries
(Armenia, Georgia and Turkey). Its meetings take place three
times a year, usually combined with thematic workshops.
Since its establishment, the Energy Efficiency Coordination
Group, like the Task Force before it, facilitates the transposition of EU Directives on energy efficiency into national legislation and supports their effective implementation. The Group
also brings together different multilateral donors and International Financing Institutions engaged in regional investment
and technical support initiatives (Fig. 5). The support to energy
efficiency provided will be described in the next chapters.
Fig. 5: Energy Community Donors Community and Partners
UNDP, UNIDO, UNECE
Source: Energy Community Secretariat
Is the legal
framework enabling
enough energy
efficiency investments
and measures?
B.2. The Implementation of the Energy
Efficiency Acquis
ing documents (in early development or the
process not started yet).7
After five years, the reform focus has shifted from primary
to secondary legislation, often assisted by various donor programmes. Nevertheless, the progress in establishing a wellfunctioning legal framework is not uniform across the Contracting Parties. The charts on the next pages strive to give
an indicative, but not exhaustive, overview of the level of
implementation of each Directive in the Contracting Parties.
Despite a certain level of progress achieved in transposition
(represented by green colour) there is still high percentage
of draft legislation (finalised but still not adopted) and pend-
Although the transposition in the national legislative framework is a key step forward, this is not
enough unless it is accompanied by the full package
of regulations and by-laws that are essential for the implementation of the acquis. In this area, there is still a lot of work to
do, mainly in the field of the Energy Performance of Buildings
Directive (EPBD). This is a clear sign that countries still need to
focus on completing the legal framework to enable effective
implementation (see Fig. 6, 7 and 8 for detailed assessment).
7
This indicator is mainly for the purpose of comparison between countries and does not represent absolute values
ENERGY COMMUNITY SECRETARIAT | 15
Fig. 6: Transposition of the Energy Service Directive
Transposition of the Energy Service Directive in the Energy Community
100%
80%
60%
40%
20%
0%
Albania
Bosnia and
Herzegovina
Kosovo*
FYR of
Macedonia
Moldova
Montenegro
Serbia
Transposed
Source: Energy Community Secretariat, status as of April 2015
The 30 June 2013 marked the deadline for the draft second
Energy Efficiency Action Plans (EEAPs). By May 2014, the Secretariat had received the government approved second EEAPs
from Kosovo*, Montenegro, Serbia and Bosnia and Herzegovina (entity of Republika Srpska), as well as the first EEAP of
Moldova. Having joined the Energy Community at a later date,
Moldova is subject to different deadlines. The others presently
fail to fulfil their obligations under Directive 2006/32/EC. At
Ukraine
Draft
Pending
the same time, many of the plans not yet officially adopted by
the governments (Albania, Bosnia and Herzegovina, former
Yugoslav Republic of Macedonia, Ukraine) and thus not officialy submitted to Secretariat were prepared and are already
being implemented to a large extent, mainly with technical and
financial assistance from donors and International Financial
Institutions (IFIs).
Fig. 7: Transposition of the Energy Performance of Buildings Directive in the Energy Community
Transposition of the Energy Performance of Buildings Directive
in the Energy Community
100%
80%
60%
40%
20%
0%
Albania
Bosnia and
Herzegovina
Kosovo*
Source: Energy Community Secretariat, status as of April 2015
16 | ENERGY COMMUNITY SECRETARIAT
FYR of
Macedonia
Moldova
Montenegro
Transposed
Serbia
Ukraine
Draft
Pending
Directive 2010/31/EU on Energy Performance of Buildings is generally recognized as the most complex piece of energy efficiency
legislation. Its implementation requires cooperation between
various stakeholders and a broader spectrum of activities.
The situation with EPBD transposition in the Energy Community
is still characterized by an incomplete and insufficient legal and
institutional framework. The certification of buildings is one of
the most advanced areas of transposition. The most common
problems include the development of a proper scheme for costoptimal calculation for energy performance of buildings, the
software for energy performance certification, preparation of
national building stock inventories, of the climatic database as
well as training of energy assessors, education and information
campaigns directed fowards the general public.
This situation is on the way to being significantly improved in
all the Contracting Parties with the technical assistance that
is being provided through the Regional Energy Efficiency Programme for the Western Balkans (REEP) in the Western Balkans and bilateral assistance from the United States Agency
for International Development (USAID) and the European Bank
for Reconstruction and Development (EBRD) in Moldova and
Ukraine.
Fig. 8: Transposition of the Energy Labelling Directive in the Energy Community
Transposition of the Energy Labelling Directive in the Energy Community
100%
80%
60%
40%
20%
0%
Albania
Bosnia and
Herzegovina
Kosovo*
FYR of
Macedonia
Source: Energy Community Secretariat, status as of April 2015
As shown above, the Labelling Directive has reached the highest level of transposition out of the three energy efficiency
Directives. Solely Bosnia and Herzegovina needs to catch up
and transpose its Labelling Directive and the Delegated Regulations regarding energy related products.
The main outstanding issue with the implementation is market
surveillance, i.e. ensuring that the suppliers of the products are
properly respecting the law and by-laws.
B.3. Next Steps: Following the European
Union’s Energy Efficiency Policy
The Energy Community is in the process of adopting the EU’s
Directive 2012/27/EU on Energy Efficiency (EED). The EED establishes a common framework of measures in order to ensure
the achievement of the European Union’s 2020 20% headline
target on energy efficiency and to pave the way for further
energy efficiency improvements beyond that date. It also lays
down rules designed to remove barriers in the energy market
and overcome market failures that impede efficiency in the
supply and use of energy and provides for the establishment of
Moldova
Montenegro
Transposed
Serbia
Ukraine
Draft
indicative national energy efficiency targets for
2020. The EED amends two directives: Ecodesign Directive 200/125/EC and Labelling
Directive 2010/30/EU recast. It also repeals
Directives 2004/8/EC on Promotion of Cogeneration and 2006/32/EC on Energy End
Use Efficiency and Energy Services (ESD).
Pending
Following the
EU energy policy,
while adapting it to the
Energy Community
While the Energy Community incorporated the
ESD in 2009 and the Labelling Directive in 2010, it
has never incorporated the Directives on Cogeneration and
Eco-design in its acquis. Therefore the EED, once adopted in
the Energy Community will have a significant impact on energy
efficiency compared to status quo.
In October 2013, the Ministerial Council adopted a Recommendation to the Contracting Parties as a basis for preparing the adoption of the Directive. The European Commission,
which was invited to propose the adoption of new acquis in
the Energy Community, is expected to present its formal proposal at the Energy Community Ministerial Council meeting
in Tirana, in October 2015.
ENERGY COMMUNITY SECRETARIAT | 17
18 | ENERGY COMMUNITY SECRETARIAT
II. FROM LAWS TO INVESTMENTS:
OPPORTUNITIES FOR ENERGY EFFICIENCY FINANCING
ENERGY COMMUNITY SECRETARIAT | 19
II. From Laws to Investments:
Opportunities for Energy Efficiency Financing
A. OVERVIEW
The transposition of the Energy Community’s energy efficiency
legal framework alone will not bring the significant changes
needed to realize the energy saving potential of the Contracting Parties. Durable impact can only be achieved through investments both by public sector institutions and private actors
with commercial and International Financial Institutions (IFIs)
financing. Parallel to supporting the implementation of the
acquis, the Secretariat’s Energy Efficiency Coordination Group
(EECG) aims to maximise the cooperation with the donors’
community8 in order to facilitate access to financing and technical assistance for the Contracting Parties. The Secretariat thus
acts as matchmaker between energy efficiency projects that
need financing and the donors’ community.
At the same time, the study showed that a large majority of
this funding, over 500 million EUR, remained underutilized due
to the lack of appropriate delivery mechanisms to link the local
energy efficiency projects with the available financing.
The EECG has become an important platform to facilitate the
IFIs’ financing. This is increasingly recognised by the IFIs themselves. The need for investments is also reflected in the EECG’s
Work Programme, thus ensuring that the implementation of
the acquis goes hand in hand with the realization of investment programmes.
In 2015, a research conducted by the IFI Coordination Office
identified eight regional initiatives/programmes offering financial and/or technical assistance to improve energy efficiency in
the Western Balkans, bringing the total amount of financing
available to over 733.6 million EUR9 (Fig. 9).
Fig. 9: Energy Efficiency Facilities in the Western Balkans Q1
2015 (million EUR)
5.50
3.80
95.00
30.80
74.00
100.00
332.00
92.00
Total EE finance:
733,6 million EUR
GGF
EBRD WeBSEFF
World Bank EE Finance
KfW EE finance
EBRD WeBSEDFF
EEFF2007 (KfW & CEB)
GIZ EE finance
UNDP
Source: WBIF, EE Financing Facilities in WB6: Current Status and Opportunities, page
6, presented on 18.03.2015, Vienna
8
9
Energy Community donors community is chaired and coordinated by the European Commission. Its representatives attend the EECG and are regularly
invited to the Ministerial Council meetings.
WBIF website /Financing/Energy Efficiency
20 | ENERGY COMMUNITY SECRETARIAT
As high as it may appear, this figure does not include all lending programmes in the Western Balkans. In addition, Ukraine and
Moldova have access to other funding programmes, which are not included in the above figure.
Fig. 10: Energy Efficiency Financing in the Western Balkans: How is it used?
Funds already committed to projects (€ million)
Amounts available (€ million)
3.8
5.5
74
37.1
171
5.4
57.9
12.6
159
25.4
13.9
87.4
Total:
228 million EUR
GGF
EBRD WeBSEFF
EEFF2007 (KfW & CEB)
78.2
Total:
502 million EUR
EBRD WeBSEDFF
KfW EE finance
World Bank EE Finance
GIZ EE finance
UNDP
Source: WBIF, EE Financing Facilities in WB6: Current Status and Opportunities, page 8, presented on 18.03.2015, Vienna
Providing that approximately two thirds of the available financ- ing these barriers via project preparation assistance, informaing has not yet been committed, one could conclude that tion and awareness raising campaigns, etc.
money is not the only factor at play. There are still many barriers to the uptake of energy efficiency measures, primarily
In the next subchapters, the Energy Community’s core
of a legal and regulatory nature. A significant amount
energy efficiency financing partners and their proof additional technical support and assistance is
grammes are explained.
IT IS NOT ALL
dedicated to assisting the countries in overcomABOUT MONEY!
Money for energy
efficiency seems to be
sufficient, only the use
of these funds
is lacking. Why
is that?
ENERGY COMMUNITY SECRETARIAT | 21
B. MAIN FINANCING INITIATIVES AND TECHNICAL ASSISTANCE PROGRAMMES
This section outlines those programmes financed by either
the European Union through the European Commission, the
International Financial Institutions or other international aid
agencies that are implemented in more than one country
(multi-beneficiary) and focus on energy efficiency and small
renewable energy projects.
These are by far not the only programmes in the Energy Community Contracting Parties, as many countries have their own
bilateral programmes with various donors.
It was difficult to separate the “pure” investment programmes
from the “pure” technical assistance programmes, as many of
these have both features. Therefore the enumeration below is
based on the “dominant” feature of the respective programme.
For the Energy Community Contracting Parties the vast majority of technical assistance comes from EU funds in the form of
two instruments: a) the Instrument for Pre-Accession Assistance
(IPA): IPA II 2014 - 2020 for the Western Balkans and b) the
European Neighbourhood Instrument (ENI) 2014 - 2020.
B.1. Western Balkans Investment Framework
The Western Balkans Investment Framework (WBIF) supports
socio-economic development and EU accession across the
Western Balkans through the provision of finance and technical
assistance for strategic investments, particularly in infrastructure, energy efficiency and private sector development. It is a
joint initiative of the European Union, International Financial
Institutions, bilateral donors and the governments of the Western Balkans.
The WBIF applies the principal of financial “blending” – combining grants and loans – whereby relatively small grants are
provided that subsequently attract much larger amounts of
loan finance. The grants are predominantly used for technical
assistance (TA) in preparing a project’s technical documentation
and thereby helping investors to make their decision. The Infrastructure Projects Facility (IPF) administrates the TA projects.
WBIF distributes its grants into four sectors: energy, environment, social and transport.10
B.1.1. Technical Assistance for Investment Preparation
A number of additional grant-funded instruments are available to the Contracting Parties to support the development of
socio-economic infrastructure, including in the energy field.
These can be divided into two categories – EU-led blending
mechanisms and technical assistance programmes. The enumeration that follows is by far not exhaustive and highlights
mainly initiatives that cover multi–beneficiaries, rather than
national ones.
Out of the total of 193 energy sector projects supported with
TA (2009 - 2014), the WBIF reported 30 projects in energy
efficiency in May 2015.11 In short, the bulk of the projects are
large infrastructure projects, and only approximately 24% of
the total grant is dedicated to energy efficiency projects.
Table 2 provides several examples of energy efficiency projects
in Bosnia and Herzegovina, Kosovo* and Serbia. For more detailed information, please visit http://www.wbif-ipf.eu.
© Energy Community Secretariat, Representatives of the donors community at the 10th Energy Community Ministerial Council, October 2012, Budva
10
11
Western Balkans Investment Framework website / Introduction
WBIF website / Investment Projects Database
22 | ENERGY COMMUNITY SECRETARIAT
Table 2: WBIF Grants for Investment Preparation
WBIF’s Grants for Investment Preparation
Contracting
Party
Project
Bosnia and
Smart metering/ARM system design & implementation support
Herzegovina (economic and financial appraisal)
Budget
Grant: 460,000 EUR
Estimated investment: 30 million EUR
Lead IFI: EIB
Improvement of district heating in Pristina
Grant budget: 300,000 EUR (TA)
6 million EUR (investment Phase 1)
14 million EUR (Investment Phase 2)
Estimated investment: 27.3 million EUR
Lead IFI: KfW
Energy efficiency measures in public buildings
Grant budget: 600,000 EUR
Estimated investment: 15.6 million EUR
Lead IFI: KfW
Energy efficiency measures in central public buildings
Grant budget: 700,000 EUR
Lead IFI: World Bank
Fuel switching & system expansion for district heating in Gjakov
Grant budget: 300,000 + 600,000 EUR
Estimated investment: 6.3 million EUR
Lead IFI: KfW
Energy efficiency measures in municipal public buildings
Grant budget: 2.5 million EUR
Estimated investment: 7.5 million EUR
Lead IFI: KfW
Rehabilitation of district heating system - Phase IV
Grant budget: 500,000 EUR
Estimated investment: 58.3 million EUR
Lead IFI: KfW
Energy efficiency in public buildings - Serbia EEP
Grant budget: 1.3 million EUR
Estimated investment: 18 million EUR
Lead IFI: KfW
Kosovo*
Serbia
Source: compiled by Eenergy Community Secretariat from WBIF/ Project Data/Investment Projects Database
ENERGY COMMUNITY SECRETARIAT | 23
In parallel to technical support to individual energy efficiency
investment projects, the European Commission also supports
regional energy efficiency financing through different investment programmes. These include:
B.2. Regional Energy Efficiency
Programme for the Western
Balkans (REEP) and Showcases
The Regional Energy Efficiency Programme (REEP) is one of
the flagship programmes funded by the European Commission and the WBIF with a 20 million EUR allocation from the
European Commission and an additional 3.35 million EUR from
bilateral donors through the European Western Balkans Joint
Fund. The European Bank for Reconstruction and Development
(EBRD) implements the REEP in partnership with the Energy
Community Secretariat and the Energy Efficiency Coordination
Group (EECG). The countries targeted are Albania, Bosnia and
Herzegovina, Croatia, former Yugoslav Republic of Macedonia,
Kosovo*, Montenegro and Serbia.
An illustration of the structure of the programme is presented
in figure 11.
Fig. 11: Overview of the Regional Energy Efficiency Programme (REEP) in the Western Balkans
REEP Overview
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
WeBSEDFF (extension)
WeBSEFF II
Window 2
Intermediated financing
&
Window 3
Direct financing
Window 1
ESCO support
&
Policy dialogue
€ 50m financing + € 5.75m grants
€ 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
Energy Service Companies (ESCOS)
€ 5m grants
• Legislative support
• Technical project preparation
• Direct financing facility
• Medium scale RE and EE improvements in
industrial enterprises
Policy dialogue support
€ 1m + € 0.5m grants
• EPBD
• Procurement of EE goods
• Utility obligation schemes
Source: EBRD, EBRD’s Western Balkans Regional Energy Efficiency Programme (REEP), page 15, presented 04.04.2015, Brussels
The programme is built on the success of two EBRD forerunners: the Western Balkans Sustainable Energy Direct Financing
Facility (WeBSEDFF) and the Western Balkans Sustainable Energy Financing Facility (WeBSEFF). Both of these programmes
successfully combined investment financing, technical assistance and investment incentives to foster a strong portfolio
of energy efficiency and renewable energy projects. They also
benefited from a comprehensive institutional capacity building
component, providing targeted consultancy support to address
12
specific weaknesses in the regulatory framework for renewable
energy. This led to a significant improvement in the investment
environment for renewable energy across the whole region.12
The REEP consists of three complementary windows (subprogrammes) that link technical assistance with financing for
energy efficiency projects in the Western Balkans.
EBRD Fact Sheet, EBRD’s Western Balkans Regional Energy Efficiency Programme (REEP), May 2013
24 | ENERGY COMMUNITY SECRETARIAT
B.2.1. Policy Dialogue (Window 1)
With a budget of 6.5 million EUR, this sub-programme facilitates policy dialogue with the public authorities in the region.
The aim is to set up the legal and regulatory frameworks necessary to overcome market barriers and by this catalyze investment in energy efficiency and allow Energy Services Company
(ESCO) markets to emerge.
Window 1, Theme 1: Energy Service Companies (ESCOs) and
Energy Policy Dialogue
Window 1 Theme 1 supports the creation of effective energy
efficiency legislation for public sector projects. These projects
are expected to be implemented via ESCOs in Bosnia and Herzegovina, Montenegro and Serbia. The assistance focuses on
removing barriers to procurement of goods and services in the
public sector using private sector financing through ESCOs.
The benefits estimated from the realization of the seven street
lighting projects in Serbia are:
• Up to 10,800 tCO2 reduction per annum;
• Up to 520,000 EUR per annum financial savings (energy
savings and lower maintenance costs); and
• Up to 7,000 MWh electricity savings per annum.
The investment costs are estimated at up to 2.4 million EUR
when baseline technology is assumed to be mercury and upgraded to sodium.13
Theme 1 of Policy Dialogue REEP has provided Serbia with a
modern rulebook for energy efficiency financing with ESCOs
which was adopted by the Serbian government in May 2015.
Window 1, Theme 2: Policy Dialogue Support
It also provides technical assistance to local public authorities
for contracting energy efficiency investment projects through:
Window 1 Theme 2 offers policy dialogue assistance to Albania, Bosnia and Herzegovina, former Yugoslav Republic of
Macedonia, Kosovo* and Serbia under three domains:
i. Identification of projects;
ii. Approval process - preparing tender documentation, procurement and contracting;
iii. Monitoring the implementation;
iv. Marketing activities to attract the private sector; and
v. Assisting local banks in financing energy efficiency projects.
1. Transposition of the EU’s Energy Performance of Buildings
Directive (EPBD);
2. Public procurement rules and guidelines for the purchase of
energy efficiency equipment; and
3. Utility energy efficiency policies and reforms of energy tariffs,
metering and billing.
Theme 1 budget is 5 million EUR.
The total budget for this Theme is 1.5 million EUR (1 million
EUR Western Balkans Joint Fund and 500,000 EUR from EBRD
Shareholders’ Special Fund).14 The initiative has practically removed one of the most significant barriers to using private
investments in public sector energy efficiency projects.
In 2014 - 2105, seven street lighting projects in Serbia as well as
the thermal rehabilitation of a large public hospital in Bosnia and
Herzegovina were prepared for tendering with private ESCOs.
13
14
EBRD Fact Sheet, EBRD’s Western Balkans Regional Energy Efficiency Programme (REEP), May 2013
EBRD Fact Sheet, EBRD’s Western Balkans Regional Energy Efficiency Programme (REEP), May 2013
ENERGY COMMUNITY SECRETARIAT | 25
Theme 2 of Policy Dialogue has, among others, delivered a
state of art methodology for calculation of minimum energy
performance of buildings and the associated software, ensuring the path for buildings certification in the Western Balkans.
Serbia, Bosnia and Herzegovina and former Yugoslav Republic
of Macedonia approved projects worth 59 million EUR. All
these investments were financially viable – average pay back
time was just over three years.
B.2.2. Credit Line Facility Window (WeBSEFF I and II);
Showcases
The projects are expected to reduce CO2 emissions by over
139,000t/yr – the equivalent of taking over 77,000 cars off
the road annually – and reduce energy consumption by almost
500 GWh/yr.15
WeBSEFF is used for financing smaller scale energy efficiency
and renewable energy projects in public and private sector,
through local participating banks.
Currently applicable in Bosnia and Herzegovina, former Yugoslav Republic of Macedonia and Serbia, WeBSEFF comprises
dedicated credit lines that provide funds for onward lending
by participating banks in these countries to SMEs for projects
designed to increase energy efficiency and develop energy from
renewable sources.
In 2009, the EBRD, supported by the European Union, launched
the first WeBSEFF with the objective to support investments
in energy efficiency and renewable energy across the Western
Balkans. Between 2009 and 2013, eight participating banks in
Building on the success of the programme, the EBRD launched
the WeBSEFF II – a new 92 million EUR credit line facility in October 2013. It includes an incentive budget of 11.2 million EUR
and a technical cooperation budget of 3.3 million EUR from the
European Commission. To make energy efficiency investments
even more attractive, investments can receive a grant for up to
10% of the loan amount in case of private sector investors or
15% in case of municipalities after a successful completion of
the project. WeBSEFF II has been designed to address untapped
potential for energy efficiency investments and remaining barriers in the market – in accordance with the objectives of the
participating countries’ Energy Efficiency Action Plans (EEAPs),
which give a prominent role to the public sector.
Table 3: WeBSEFF I and II financed Energy Efficiency Projects in the Contracting Parties
WeBSEFF I and II financed Energy Efficiency Projects
EBRD WeBSEFF I
EBRB WeBSEFF II
Bosnia and Herzegovina
Energy Efficiency
Renewable Energy
Energy Efficiency
Renewable Energy
No. of projects
Total investment
No. of projects
Total investment
No. of projects
Total investment
No. of projects
Total investment
44
18,082,764 EUR
19
10,837,996 EUR
9
2,191,157 EUR
4
3,073,203 EUR
Leading Partner Banks: NLB Tutunska
Bank, Societe Generale Bank
Leading Partner Banks:
Ohridska Bank, UniCredit Bank
Energy Efficiency
Renewable Energy
Leading Partner Bank: Raiffeisen
Bank
Leading Partner Bank: UniCredit Bank
FYR of Macedonia
No. of projects
Total investment
26
5,706,392 EUR
Leading Partner Bank: Raiffeisen
Bank
Energy Efficiency
No. of projects
Total investment
10
1,619,047 EUR
No. of projects
Total investment
2
1,920,000 EUR
Leading Partner Bank: Raiffeisen
Bank
Renewable Energy
No. of projects
Total investment
Leading Partner Banks: Ohridska
Bank, NLB Tutunska Bank
Serbia
Energy Efficiency
Energy Efficiency
Total investment
No. of projects
Total investment
No. of projects
Total investment
24
18,863,424 EUR
4
1,830,606 EUR
2
441,000 EUR
Leading Partner Banks: Raiffeisen
Bank, Banca Intesa
Source: WeBSEFF website / Track Record
15
Renewable Energy
No. of projects
WeBSEFF website / Track Record
26 | ENERGY COMMUNITY SECRETARIAT
Leading Partner Bank:
Societe Generale Bank
Leading Partner Bank: Banca Intesa
Renewable Energy
No. of projects
Total investment
B.2.2.1 WeBSEFF Showcases
The showcases presented below are examples of the many
projects invested in by WeBSEFF I and II (in Table 3). They were
selected for their potential of replication in other countries as
well as for their high benefits in terms of savings of both CO2
emissions and energy.
BOSNIA AND HERZEGOVINA
Plastics Manufacturing Company Improvement of Production Facilities
PROJECT
The plastics company moulds packages for the food industry, furniture, construction industry elements and also produces moulding tools.
The investment resulted in the replacement of hydraulically powered injection moulding machines with the new ones that would only use
energy when and as required.
FINANCIAL STRUCTURE
EUR
Total project value
639,000
of which
WeBSEFF EBRD total loan
639,000
IMPACT
•
•
•
•
Electricity consumption reduced by 645 000 kWh per annum.
Operational and maintenance costs reduced by 116 100 EUR per annum.
Scrap reduced by almost 2 000 kg per annum.
Total savings of 175 000 EUR per annum.
Source: WeBSEFF website/Project: Plastics Manufacturing Company Project
former Yugoslav Republic of MACEDONIA
Confectionary Manufacturer Rehabilitation
PROJECT
The confectionary company that is in business since 1883 faced the aging of its technologies that leads to high energy costs and raw
material losses in the production process. The investment resulted in replacing an old boiler with a modern one, rehabilitation of the steam
and condensate system, replacing the vacuum system of the lozenge production line and also modernisation of two production lines.
FINANCIAL STRUCTURE
EUR
Total project value
904,000
of which
WeBSEFF EBRD total loan
770,000
IMPACT
•
•
•
•
•
•
•
•
CO2 emission reduced by 490 t per annum.
Electricity consumption reduced by 15 500 kWh per annum.
Natural gas consumption reduced by 254 200 Nm³ per annum.
Water consumption reduced by 4100 t per annum.
Salt consumption reduced by 11 t per annum.
Raw material consumption reduced by 22 200 EUR per annum.
Waste material reduced by 8 600 EUR per annum.
Operational and maintenance costs reduced by 74 900 EUR per annum.
Source: WeBSEFF website / Project: Confectionary Manufacturer Project
ENERGY COMMUNITY SECRETARIAT | 27
SERBIA
Agribusiness Energy and Resource Efficiency, Biomass Use
PROJECT
Victoria Group, a large agribusiness group, operates the largest crushing seed capacities in South Eastern Europe. Its operations include
edible oil, fertilizer, veterinary and animal feed production as well as grain logistics. European Bank for Reconstruction and Development (EBRD) has supported Victoria Group since 2007. In total two plants, specialising in seed crushing and soybean protein production,
received support.
FINANCIAL STRUCTURE
million EUR
2007 replacement of natural gas-fired and mazut-fired boilers with two waste soybean straw boilers to produce steam
Total project value
45
of which
EBRD
5
In 2012 two additional biomass boilers using waste soy molasses and straw
Total project value
10
of which
Sustainable Energy Initiative Loans
10
TECHNICAL ASSISTANCE
Energy audit, totalling 50 000 EUR for project preparation, funded by Italy (Central European Initiative)
EXPECTED IMPACT
• Energy produced: 370 MWh per annum.
• Emission reductions: over 89 000 t CO2 per annum.
• All energy efficiency investments had internal rate of return ranging from 25 – 30%.
Source: Information was provided by Energy Efficiency and Climate Change Team at the European Bank for Reconstruction and Development (EBRD)
28 | ENERGY COMMUNITY SECRETARIAT
B.2.3. Direct Financing Facility Window (WeBSEDFF)
technical assistance and investment incentives.
A total of 50 million EUR was allocated to replenish the WeBSEDFF’s initial funding. This will be invested in both medium
scale renewable energy and energy efficiency improvements
in industrial enterprises. Furthermore, the facility intends to
provide financing to ESCO projects. Grants in the amount of
6.35 million EUR from the European Commission will fund
As of 31 March 2013, WeBSEDFF (Table 4) has a portfolio of 15
signed projects for a total of 63.9 million EUR of EBRD financing and a total project value of 124.2 million EUR, estimated
to avoid a total of 442 tonnes CO2 equivalent per annum once
the projects are completed.
Table 4: Western Balkans Sustainable Energy Direct Funding Facility Projects in the Contracting Parties
Western Balkans Sustainable Energy Direct Funding
Facility Projects in the Contracting Parties
Contracting Party Project
Total project
value (million
EUR)
Amount financed
Type
by EBRD (million (EE/RES)
EUR)
Construction of 2 SHPP with a total capacity of 7.7 MW
10.3
6.0
RES
Construction of 2 SHPP with a total capacity of 5.2 MW
4.9
3.0
RES
Construction of 2 SHPP with a total capacity of 5.0 MW
6.8
5.2
RES
Construction of SHPP with a capacity of 7.8 MW
17.6
6.0
RES
Total
39.6
20.2
Construction of Biomass CHP plant
11.1
6.0
RES
BINGO RE & EE projects in retail sector
5.4
5.4
EE/RES
Total
16.5
1.4
Rehabilitation of hydropower unit and installation of a new turbine
generator
2.5
1.4
RES
Construction of 7 SHPP with a total capacity of 5.8 MW
11.6
6.0
RES
Refurbishment of production utilities of a meat processing company
1.5
1.3
EE
Construction of 4 SHPP with a total capacity of 4.1MW
8.2
6.0
RES
FYR of Macedonia Construction of 3 SHPP with a total capacity of 3.7 MW
6.3
3.0
RES
Construction of 4 SHPP with a total capacity of 7.9 MW
19.5
6.0
RES
Construction of SHPP with a capacity of 3.5 MW
6.4
2.2
RES
Total
59
49
Albania
Bosnia and
Herzegovina
Kosovo*
Serbia
Construction of 4 SHPP with a total capacity of 2.7 MW
Total (million EUR)
5.5
2.7
117.6
55.9
RES
Source: WeBSEDFF website / Case Studies and Results
In conclusion, REEP as a programme with multiple windows has
proven the added value of the EU blending grants with the IFIs
loans in a unique design and professional management. This
brings efficiency and climate benefits, while paving the way
for market penetration of both energy efficiency technologies
and financing models (ESCOs). The policy dialogues under this
programme contributed to empowering national governments
to implement properly a modern legal framework at par with
the EU Member States.
B.3. The Green for Growth Fund Southeast
Europe (GGF) and Showcases
The Green for Growth Fund Southeast Europe (GGF) is the
first specialized fund to advance energy efficiency and renewable energy in Albania, Bosnia and Herzegovina, Croatia, former Yugoslav Republic of Macedonia, Kosovo*, Montenegro,
Serbia and Turkey as well as in the nearby European Eastern
Neighborhood region: Armenia, Azerbaijan, Georgia, Moldova
and Ukraine. As of March 2015, the committed fund volume
amounts to 355 million EUR.
The GGF was initiated as a public-private partnership in December 2009 by the KfW Development Bank (KfW) and the
ENERGY COMMUNITY SECRETARIAT | 29
European Investment Bank (EIB) with the financial support of
the European Commission, the German Federal Ministry for
Economic Cooperation and Development (BMZ) and the European Bank for Reconstruction and Development (EBRD). The
European Commission contributed 38.6 million EUR, including
5 million EUR offered to the GGF for technical assistance.
impact of the fund’s investment activities, the GGF’s Technical Assistance Facility offers capacity building support to local financial institutions and partners (Fig.10). The investment
portfolio per country is presented in Figure 11.
It provides refinancing to financial institutions for on-lending
to enterprises and private households seeking to finance energy efficiency projects. The GGF also invests directly in small
to medium-scale renewable energy projects. To maximize the
Table 5 and 6 present GGF’s development performance both
in the South East Europe region and the European Eastern
Neighbourhood. At present the number of borrowers, volume
of funding and the thereof resulting savings in South East Europe outweigh those in the European Eastern Neighbourhood,
also due to the later starting date of the operations.
Fig. 12: GGF Technical Assistance Projects per Approved Types
Fig. 13: GGF Investment Portfolio
(% based on portfolio outstanding over total assets)
Southeast Europe Region (SEE)
6
No of PIs
Turkey
26%
Croatia
16%
Serbia
44
58
2
11%
Albania
4
7%
2
Bosnia and Herzegovina
5%
3
FYR of Macedonia
5%
1
European Neighbourhood Region (ENR)
15
No of PIs
Armenia
6%
4
Azerbaijan
6%
2
Georgia
7
Ukraine
Moldova
2
4%
1
2%
1
0%
TOTAL PORTFOLIO
Capacity Development of Financial Institutions (FIs)
4
252.4 million EUR
Capacity Development of Non-Financial Institutions (NFIs)
Awareness Raising & Market Enabling
Impact Analyses & Energy Audits
Research & Analyses
Sources: Green for Growth Fund Factsheets, Southeast Europe at a Glance Q4 2014, Technical Assistance Facility, and Southeast Europe Investment and Environmental
Impact Q4 2014, Investment and Environmental Impact
Table 5: GGF Development Performance Sub-loan Disbursements since Fund’s Inception
GGF Development Performance Sub-loan
Disbursements since Fund’s Inception (As of Q4/2014)
Total
South East Europe
European Eastern Neighbourhood
Number of active borrowers
13,020
9,634
3,386
Cumulative sub-loan disbursements since inception
159.2 million EUR
145.5 million EUR
13.7 million EUR
Energy savings (MWh/yr)
850,063
762,175
87,887
CO2 reduction (tCO2/yr)
218,304
199,119
19,185
Source: Finance in Motion, EE/RE Lending in the Western Balkans and Turkey, page 7, presented on 18.03.2015, Vienna
30 | ENERGY COMMUNITY SECRETARIAT
Table 6: GGF financed Projects in the South East European Contracting Parties
GGF financed projects in the
South East European Contracting Parties
Contracting Party
Max. Issue amount
Energy saved
Co2 reduced
Sub-loans
Albania
Strong RE (SHPP) portfolio component
24.1 million EUR
1,117 MWh
per annum
671 tCO2
per annum
53
Bosnia and Herzegovina
Predominantly EE loans to households and small businesses
20.5 million EUR
46,777 MWh
per annum
15,500 tCO2
per annum
1,282
FYR of Macedonia
EE loans to households and small businesses
15.0 million EUR
26,676 MWh
per annum
8,308t tCO2
per annum
1,285
Serbia
EE loans to households, small, medium, and large businesses
40.0 million EUR
379,650 MWh
per annum
107,916 tCO2
per annum
3,980
Source: Finance in Motion, EE/RE Lending in the Western Balkans and Turkey, pages 17-20, presented on 18.03.2015, Vienna
B.3.1. GGF Showcases
The next section highlights a few representative cases of GGF’s operations.
BOSNIA AND HERZEGOVINA
Strengthening the Bank’s Lending Capacity for Energy Efficiency
PROJECT
The loan facility, dedicated to energy efficiency projects, will enable UniCredit Banja Luka’s private and business customers to invest in energy efficient equipment and upgrades. The range of projects financed includes the improvement of building envelopes, heating systems,
heat distribution systems, and interior and exterior lighting systems as well as the conversion to natural gas and renewable energy utilization, and the installation of facilities or equipment for reducing energy consumption.
FINANCIAL STRUCTURE
million EUR
Total project value
10
of which
The Green for Growth Fund
10
IMPACT
• Projected reduction of energy consumption is over 37,000 MWh per annum.
• Projected reduction of CO2 emissions is over 30,860 per annum.
Source: The Green for Growth Fund web-site
ENERGY COMMUNITY SECRETARIAT | 31
SERBIA
Support for Energy Efficiency Lending Programme
PROJECT
“Intesa Leasing” is one of Serbia’s leading leasing companies and a new partner institution of the Green for Growth Fund. The credit facility will support sub-loans for replacing and/or upgrading energy inefficient manufacturing and agricultural equipment, and thus contribute
towards reducing overall energy consumption. The agreement extends access to long-term energy efficiency financing for a wide range of
clients.
FINANCIAL STRUCTURE
million EUR
Total project value
5
of which
The Green for Growth Fund
5
IMPACT
• Total energy saving 50 000 MWh per annum.
• Reduction of CO2 emissions by 12 500 t per annum.
Source: The Green for Growth Fund web-site
32 | ENERGY COMMUNITY SECRETARIAT
B.4. Neighborhood Investment Facility:
Eastern Partnership Countries
A few examples of NIF’s contribution to energy efficiency in
Moldova, in cooperation with the EBRD:
Launched in 2009, the Eastern Partnership aims to deepen
and strengthen relations between the European Union and its
six Eastern neighbors: Armenia, Azerbaijan, Belarus, Georgia,
Moldova and Ukraine. The Eastern Partnership represents the
Eastern dimension of the European Neighborhood Policy (ENP).
The second Phase of Moldova Sustainable Energy Efficiency
Finance Facility (MoSEFF2), 26.5 million EUR
The Neighborhood Investment Facility (NIF) was designed as
one of the blending instruments to finance capital-intensive
infrastructure projects in partner countries covered by the ENP
as well as to support their private sector. It covers infrastructure
projects in transport, energy, environment and the social sector
as well as small and medium-sized enterprises development.
The facility brings together grants from the European Commission and the EU Member States with loans from European public finance institutions including EBRD, EIB and KfW as well as
own contributions from the partner countries. NIF East covers
Armenia, Azerbaijan, Georgia, Moldova and Ukraine as well as
regional east-wide projects. Energy infrastructure investments
in Ukraine, Moldova and Georgia have received approximately
48.2 million EUR in NIF grants to accompany preparation and
implementation of investments with a total estimated cost of
4.2 billion EUR. Investments include transmission lines, generation plants (hydropower) and gas transit and storage facilities.
NIF has also allocated substantial grant funding for financial
facilities aimed at boosting investments in energy efficiency
and small scale infrastructure at municipal level. The European
Commission has earmarked grants of 1 billion EUR under the
NIF budget 2014 – 2020. To date, NIF East has received approximately one third of the financial assistance available under
NIF and this proportion is expected to remain the same under
the new financial perspective.
The first strategic objective for NIF 2014 - 2020 is “establishing better and more sustainable energy and transport interconnections (between the EU and neighboring countries and
between the neighboring countries themselves), improving
energy efficiency and demand management, promoting the
use of renewable energy sources, strengthening energy security
through diversification of energy supplies and energy market
integration, and supporting investments related to the implementation of EU agreements, including DCFTAs”.16
NIF also contributes to regional initiatives like the Green for
Growth Fund (GGF) with 13 million EUR in grants to complement 125 million EUR fund capital from EBRD, EIB and KfW
for the Eastern Partnership Countries. Similarly, NIF granted 2
million EUR to EBRD’s Energy Efficiency Programme for the Corporate Sector (a credit line of 300 million EUR from EBRD) for
the Eastern Partnership countries to improve energy efficiency
and energy savings in the corporate sector.
16
NIF is providing an investment grant and technical assistance
in amount of 4.5 million EUR, while the 22 million EUR facility
(MoSEFF) offers long-term finance to local participating banks.
These then on-lend the funds to their clients for individual projects designed to cut energy consumption and C02 emissions as
well as to improve energy use in industries, SMEs, agribusiness
and commercial buildings.
Moldovan Residential Energy Efficiency Financing Facility
(MoREEFF) (5 million EUR NIF / 25 million EUR Loan from EBRD
/ Total cost of project 41.8 million EUR).
MoREEFF provides long-term commercial financing to participating commercial banks to finance energy efficiency measures
in residential houses in the country. The NIF support is being
used to fund financial incentives to sub-borrowers, cover administration fees for the participating banks, and provide a first-loss
cover mechanism. MoREEFF had approved a total of 644 energy
efficiency loans worth approximately 2.2 million EUR and incentive grants amounting to approximately 700,000 EUR.
B.5. Eastern Europe Energy Efficiency and
Environmental Partnership (“E5P”)
The Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P) is a 93 million EUR multi-donor fund managed
by the EBRD and initiated by the European Union in 2009 to
encourage investment in energy efficiency and environmental
projects. Moldova and Ukraine are the two Energy Community Contracting Parties where the E5P is operating. It merges
financial contributions from the European Union and a group
of other countries to provide access to both loans and grants
for municipal sector projects.
The grant allocation criteria are flexible and aim to reduce energy use, pollution and greenhouse gas emissions while avoiding market distortion and increasing competitiveness. The fund
also supports policy dialogue and regulatory improvements.
E5P grants could be received as co-financing to a credit from
EBRD, EIB, Nordic Investment Bank (NIB), Nordic Environmental
Financial Corporation (NEFCO), Council of Europe Development
Bank (CEB), or the World Bank.
Based on the pledges of over 93 million EUR, a number of
projects receiving almost 60 million EUR in grants in total have
been approved so far for Ukraine. The Swedish International
European Commission, Programming of the European Neighbourhood Instrument (ENI) - 2014-2020, page 5
ENERGY COMMUNITY SECRETARIAT | 33
Development Agency (SIDA) also contributed with significant
grant funding to some of the district heating projects. Table 7
displays projects under implementation in Ukraine. Moldova
benefits from grants amounting to 20 million EUR from the
Eastern Europe Energy Efficiency and Environment Partnership Fund (E5P), after joining the E5P Fund in October 2014.
Armenia joined the Fund in March 2015.
Table 7: Approved E5P Projects in Ukraine
E5P Projects in Ukraine
Project Name
Funding
Zhytomyr District Heating Project
EBRD Loan – 10 million EUR; E5P Grant – 5 million EUR;
SIDA Grant – 0.7 million EUR; Local contribution – taxes.
Ternopil District Heating Project
EBRD Loan – 10 million EUR; E5P Grant – 5 million EUR;
SIDA Grant – 1.1 million EUR; Local contribution – taxes.
Zaporizhzhya District Heating Project
EBRD Loan – 6 million EUR; E5P Grant – 2 million EUR;
Other – 0.6 million EUR; Local contribution – taxes.
Lviv District Heating Project
EBRD Loan – 20 million EUR; E5P Grant – 10 million EUR;
Local contribution – 3 million EUR; Other – 1.3 million EUR.
Lutsk District Heating Project
EBRD Loan – 7 million EUR; CTF – 3 million EUR;
E5P Grant – 4 million EUR; Other – 0.9 million EUR;
Local contribution – taxes.
Energy Efficiency in Public Buildings, Financed through ESCOs
in Dnipropetrovsk
EBRD Loan – 20 million EUR; E5P Grant – 2.5 million EUR;
Heat Supply in Rivne City
NEFCO Loan – 1.75 million EUR; E5P Grant – 0.5 million EUR;
Demoukraina 1 + Demoukraina 2
Demonstration Projects in the Ukraine District Heating Sector
NEFCO Loan – 8 million EUR; E5P Grant – 0.9 million EUR;
SIDA Grant – 6.5 million EUR; Local contribution – 2.6 million EUR.
Performance Contracting of Energy Efficiency Measures in Kiev
Public Buildings
NEFCO Loan – 5 million EUR; E5P Grant – 1.5 million EUR;
SIDA Grant – 0.3 million EUR; USAID Grant – 0.5 million EUR;
Local contribution – 2 million EUR.
Zhytomyr - Energy Efficiency in Public Buildings
NEFCO Loan – 3 million EUR; E5P Grant – 1.35 million EUR;
SIDA Grant – 0.2 million EUR; Local contribution – 0.155 million EUR.
Poltava District Heating Project
EBRD Loan – 15 million EUR; CTF Loan – 4 million EUR;
E5P Grant – 5 million EUR; Local contribution – 4.5 million EUR.
Vinnitsa District Heating Project
NEFCO Loan – 0.4 million EUR; E5P Grant – 0.3 million EUR.
Source: Eastern Europe Energy Efficiency and Environment Partnership (E5P) website / Projects and Cases; compiled by Energy Community Secretariat, September 2014
B.6. INOGATE
Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan are all beneficiaries of the European Commission-financed
INOGATE programme (see www.inogate.org). INOGATE is a
long running technical assistance programme that provides
short-term expertise and capacity building on energy related
matters. Topics covered include energy policy, standards, tariffs, renewable energy, energy efficiency and statistics. The
programme covers the Eastern Partnership countries and Central Asia, assisting Ukraine and Moldova to meet the Energy
Community obligations. The programme is currently being reviewed by the European Commission to assess how best such
assistance can be provided going forward.
17
EU Neighbourhood Info Centre website
34 | ENERGY COMMUNITY SECRETARIAT
The INOGATE technical secretariat had an overall budget
2012 - 2014 of 17 million EUR and a 5 million EUR “Sustainable Energy Programme” for all beneficiaries. The programme
has four objectives:
• Converging energy markets on the basis of the principles
of the EU internal energy market taking into account the
particularities of the partner countries;
• Enhancing energy security by addressing the issues of energy
exports/imports, supply diversification, energy transit and
energy demand;
• Supporting sustainable energy development, including the development of energy efficiency, renewable
energy and demand side management; and
• Attracting investment towards energy projects of common
and regional interest.17
B.7. The World Bank’s Programmes and
Showcases
In the Energy Community context, the World Bank has a clear
focus on energy efficiency projects in public buildings. According to the World Bank, the energy savings typically amount
to 30 - 45% per building in the Western Balkans, whilst the
payback periods vary from 6 to 8 years.18
The table below summarizes the World Bank’s energy efficiency
projects in seven Contracting Parties. In terms of number of
projects and volume of investment committed, Ukraine is benefiting the most from the World Bank’s support.19
Table 8: World Bank Energy Efficiency Projects in the Energy Community
World Bank Energy Efficiency Projects in the Energy Community
Bosnia and Herzegovina Energy Efficiency Project
To demonstrate the benefits of energy efficiency improvements in public sector buildings and support the development of scalable energy
efficiency financing models. The project has three components.
Total Project Cost
32 million USD
Results Indicators (01.09.2014 to 30.06.2018)
Projected lifetime fuel savings
2340000 mega joules
Number of buildings with EU-compliant energy certification
85
Number of municipal energy managers trained
59
Kosovo* Energy Efficiency and Renewable Energy Project
To: (i) reduce energy consumption and fossil fuel use in public buildings through energy efficiency and renewable energy investments; and
(ii) enhance the policy and regulatory environment for renewable energy and energy efficiency.
Total Project Cost
32.5 million USD
Results Indicators (01.07.2014 to 31.08.2020)
Projected lifetime energy savings
750000 MWh
Annual energy costs savings
16.7 million USD
FYR of Macedonia Sustainable Energy GEF Project
To develop a sustainable market for energy efficiency and renewable energy by supporting the development of an enabling framework,
institutional capacity, and necessary financing mechanisms.
Total Project Cost
8.2 million USD
Results Indicators (27.11.2006 to 31.03.2006)
Expected lifetime savings from energy efficiency projects financed under the project
112.0 GWh
Value of energy efficiency projects financed
4.25 million USD
Moldova District Heating Efficiency Improvement Project
To contribute to improved operational efficiency and financial viability of Newco and to improve quality and reliability of heating services
delivered to the population of Chisinau.
Total Project Cost
61.1 million USD
Results Indicators (16.02.2015 to 30.06.2020)
Reduction in network heat losses (GCal) (Number, Custom)
30000 GCal
Montenegro Energy Efficiency
To improve energy efficiency performance in targeted public sector buildings (schools and hospitals) in order to provide demonstrated basis
for development of a sustainable energy efficiency improvement programme in the public sector in Montenegro.
Total Project Cost
61.1 million USD
Results Indicators (24.02.2009 to 30.03.2017)
Number of public sector buildings for which project audits have been performed and
project documents have been prepared
27
Number of buildings retrofitted with energy efficiency improvement schemes
27
Lifetime energy savings
150000 MWh
18
19
World Bank, Scaling up Energy Efficiency in Buildings in the Western Balkans, Introduction, presented at the 2nd Workshop on Energy Efficiency Buildings,
15 – 16.05.2014, Vienna
Word Bank website / Projects and Operations
ENERGY COMMUNITY SECRETARIAT | 35
Serbia Energy Efficiency Project
To improve energy efficiency in public buildings in Serbia (namely Clinical Centre of Serbia, Clinical Centre of the city of Niš and 28+62
public buildings i.e. schools, healthcare and social care institutions in Serbian municipalities)
Total Project Cost
49 million USD
Results Indicators (2004-2008 Phase 1, 2009-2012 Phase 2)
Number of refurbished public facilities
90
Annual energy savings achieved in public buildings included in the scope of SEEP2
project
142.2 kWh/m2
Ukraine District Heating Energy Efficiency
The project aims at improving the energy efficiency of 10 district heating utilities around the country – saving energy, reducing CO2 emissions, and improving heat supply for over 3 million beneficiaries.
Total Project Cost
382 million USD
Results Indicators (01.07.2014 to 01.07.2020)
Projected lifetime fuel savings
1400000000 mega joules
People that gained access to more energy efficient cooking and/or heating facilities
565,000
Ukraine Energy Efficiency
To contribute to improved energy efficiency by industrial and commercial companies, municipalities, municipal sector enterprises and energy service companies by facilitating sustainable financial intermediation for the financing of energy efficiency investments.
Total Project Cost
200 million USD
Results Indicators (01.07.2014 to 01.07.2020)
Extent of energy savings
500,000 toe
Volume of energy efficiency sub-loans
200 million USD
Source: World Bank website / Projects & Operations and, REHVA Journal, Energy-efficient refurbishment of public buildings in Serbia, December 2012
By spring 2015, recently implemented and planned World Bank
projects for energy efficiency in public buildings amounted to a
total of 163 million USD.20 Recognizing that these projects have
“partially been fragmented and piecemeal”, the Work Bank
shifted from donor-driven projects to country-led programmes.
It thereby aims to decrease transaction costs, increase deal flow
and increase use of project bundling to scale-up implementation to help achieve Energy Efficiency Action Plan targets.
To this end, the World Bank is helping a number of Contracting Parties to set up Energy Efficiency Revolving Funds (EERF).
Whilst the Energy Efficiency Fund in Moldova is operational,
Albania is about to conclude its preparations to set up a fund.
The United Nations Development Programme (UNDP) and the
World Bank are in the process of preparing option papers for a
revolving fund in Bosnia and Herzegovina. As regards Kosovo*,
the World Bank and the European Commission will undertake an
options study and design a proposed fund, which may benefit
from funding from both organisations. The World Bank assisted
the Serbian Ministry of Energy to prepare an Energy Efficiency
20
21
Fund options paper, but so far there is no agreement due
to fiscal consolidation constraints.21 Nevertheless, the Ministry
of Energy set up a small (approximately 1.5 million EUR/year)
budget line type of energy efficiency fund, similar to the one
in Montenegro.
© Energy Community Secretariat, Joint Workshop with the World Bank on Scaling
Up Energy Efficiency in Buildings in the Western Balkans, May 2014, Vienna
World Bank, Financing Energy Efficiency: Funding Opportunities, presented at the Workshop on Energy Efficiency Financing, 18.03.2015, Vienna
World Bank Group, Financing Energy Efficiency in the Public Sector Using EE Funds, page 15, presented at the Workshop on Energy Efficiency Financing,
18.03.2015, Vienna
36 | ENERGY COMMUNITY SECRETARIAT
B.7.1. Showcases
The showcases presented below were selected to demonstrate the significant efficiency and environmental gains possible and
for their large replicative potential. The majority are public sector projects and in particular in the building sector.
SERBIA
Energy Efficient Refurbishment of Public Buildings
PROJECT
The public sector in Serbia was identified as a sector that needs to set an exemplary role in the implementation of energy efficiency measures. Thus in 2008 the World Bank and the Government of the Republic of Serbia launched a two-phase project on energy efficiency in
public buildings. The investment consisted of energy efficient measures in 31 healthcare institutions, 44 schools (elementary and secondary
level), five social care institutions across different municipalities, particularly: interventions focused on improving the building envelope,
boiler room modernization, fuel switching, installation of thermostatic radiator and balancing valves, installation of variable flow pumps
and automatic control systems. An energy audit of each building was conducted.
FINANCIAL STRUCTURE
million EUR
Phase 1
Phase 2
Project value
25
of which
International Development Agency loan
21
Project value
30
of which
International Development Agency loan
International Bank Reconstruction and Development loan
10
18
Total project value
55
IMPACT
•
•
•
•
Primary energy consumption decreased by almost 50%.
Building area of 400 000 m² was treated.
65 heat substations and 5,5 km of distribution network were constructed.
Measured efficiency of the new heating system is 99,4% (compared to less than 40% before the project).
Source: Federation of European Heating, Ventilation and Air Conditioning Associations; The World Bank;
Pictures: Presentation from Aleksandar Durkovic (consultant), “Investing in Energy Efficiency: Public Buildings and Facilities” November 7-8, 2013 KfW, Frankfurt, Germany
ENERGY COMMUNITY SECRETARIAT | 37
UKRAINE
Dniprovskyi Poultry Complex, Zaporizhzhya Region
PROJECT
Dniprovskyi Poultry Complex is part of an agricultural holding, the third largest broiler producer in Ukraine. The investment was directed
towards the construction of two water-heating straw-fired boiler houses and the necessary heat supply networks to deliver the generated
heat to the poultry houses, replacing natural gas consumption for the purposes of heating the poultry houses by effectively utilising the
production waste (straw).
FINANCIAL STRUCTURE
million USD
Total investment
8.1
of which
World Bank loan
6.3
Dniprovsky Poultry Complex project was partially funded out of the proceeds of the World Bank Energy Efficiency Loan (EEP) that was
received by Ukreximbank.
IMPACT
• Natural gas consumption reduced by 4.4 million m3 per annum.
Source: The World Bank in Ukraine website and The State Export-Import Bank of Ukraine website
UKRAINE
Ivano-Frankivsk Cement, Ivano-Frankivsk Region
PROJECT
The plant is one of the major cement producers in Ukraine. The investment is directed to switching the production method in processing of
raw materials from wet-to-dry method, which envisages the exclusion of water use/evaporation stage from the raw mix homogenization
process. The main component of the project is the set up and launch of a four-stage Ø3.6x54 metres in-line calciner kiln with dryer crusher,
which represents best available technology.
FINANCIAL STRUCTURE
million USD
Total investment
93
of which
World Bank loan
27
Ivano-FrankivskCement project was partially funded out of the proceeds of the World Bank Energy Efficiency Loan (EEP) that was received
by Ukreximbank.
EXPECTED IMPACT
•
•
•
•
Consumption of coal reduced by 105 000 t per annum.
Consumption of electricity reduced by 17.5 GWh per annum.
Consumption of natural gas reduced by 0.5 mcm per annum.
Carbon emissions reduced by almost 300 000 t CO2 equivalent per annum.
Source: The World Bank in Ukraine website and The State Export-Import Bank of Ukraine website
38 | ENERGY COMMUNITY SECRETARIAT
MOLDOVA
Gymnasium-kindergarten, Carpineni Village, Hincesti District
PROJECT
A gymnasium–kindergarten’s 40 year old building (used for about 200 children) has never been renovated and its heating system was
out-of-order. The local community initiated and successfully implemented a new biomass heating system for the gymnasium-kindergarten
that replaced the old fashioned, less efficient coal-fired heating system. The biomass project was implemented in accordance with UNDP
community mobilization approach.
FINANCIAL STRUCTURE
EUR
Total investment
90,765
of which
Moldova Energy and Biomass Project
50,000
IMPACT
•
•
•
•
•
•
200 children, teachers and educators attend premises heated with bioenergy.
160 kW - the installed capacity of the biomass heating system.
Biofuel is supplied by local producers.
About 1000 EUR is the amount of monthly savings.
Reduction of CO2 emissions by 480 t per annum.
3 other public institutions from the village switched from gas or coal-fired heating to biomass energy, the costs being covered from local
sources.
• Tens of families living in the village have also installed biomass boilers in their own houses.
Source: Moldova Energy and Biomass Project (MEBP) website
MONTENEGRO
Special Hospital for Pulmonary Diseases “Dr. Jovan Bulaji” Bresovik, Nikši}
PROJECT
The Special Hospital for Pulmonary Diseases “Dr. Jovan Bulaji}” Brezovik, Nikši} (Hospital) is managed by the Ministry of Health which is
responsible for investments and maintenance, i.e. for payment of energy costs. The hospital has 230 patient beds and 136 employees.
The project was directed towards improvement of the thermal energy system. The following thermal energy efficiency measures were
implemented: exterior walls insulation, thermal insulation of the attic areas, air tight windows and doors with low U-values, thermostatic
regulating valves on room heating radiators (507 pcs) and balance valves for the thermal energy system (11 pcs).
FINANCIAL STRUCTURE
EUR
Total cost
487,710
of which
International Bank for Reconstruction and Development loan
487,710
The energy efficiency project was funded from a loan from the International Bank for Reconstruction and Development (IBRD) (6.5 million EUR)
that was received by Government of Montenegro to finance the Montenegro Energy Efficiency Project (MEEP).
IMPACT
• Fuel savings for heating purposes of 52%.
• The average daily indoor temperature increased from the average temperature of 18.4°C to the average temperature of 21.9°C.
Source: Zoran Miljani}, Nebojša Jablan, GIZ Draft Implementation Reports on Energy Efficiency Projects, October 2014, pages 6-11.
ENERGY COMMUNITY SECRETARIAT | 39
B.8. Kreditanstalt für Wiederaufbau (KfW)
The KfW Development Bank (KfW), on behalf of the German
Federal Government, is supporting the countries in Eastern
and South Eastern Europe to drive forward social and economic change. KfW is involved in modernising and extending infrastructure which is necessary for economic progress.
This includes cooperation in the energy sector, particularly in
energy efficiency and also ensuring a sustainable supply of
energy through expanding environmentally friendly sources of
renewable energy. In total, KfW Development Bank committed
around 721 million EUR for the region of South Eastern Europe
and the Caucasus in 2013 (see Table 9).
Table 9: KfW Energy Efficiency Projects in the Energy Community
KfW Energy Efficiency Projects in the Energy Community
Contracting
Party
Albania
Project
Implementation of Energy
Efficiency and Renewable
Measures in Public Buildings
KfW Loan
(million EUR)
Results
5.7
• Improving energy efficiency in student campus in Tirana by efficiency
reconstruction of four similar buildings with 12,800 m2 living area.
• Reduction of energy consumption from 120 to 46kWh/m2a
Kosovo*
Energy Efficiency Project
10
• Energy efficiency projects in small enterprises and private households to
improve energy efficiency and environmental protection,
• Financed replacement of boilers, energy efficient lighting, insulation of
buildings and refurbishment of heating systems
Moldova
Programme on Promotion
of the Social Infrastructure
in Moldova
12
• The programmes aim at repairing and renovating kindergartens (59
projects), roads (10) hospitals (3), street lighting (2) and centres for the
youth (1) and elderly (1).
Energy Efficiency Program
in Public Buildings Phase 1
13
• Rehabilitation and modernization of about 30 educational facilities in
terms of energy efficiency, improvement of energy performance of the
building envelope and heating systems.
Montenegro
Energy Efficiency Programme in Public Buildings Phase 2
• Boosting energy efficiency in public buildings, ensuring sustainability of
facilities and improvement of living and working conditions within the
20 + 2 (donation)
buildings.
• The programme covers 28 educational institutions and 11 facilities.
Serbia
Municipal Environment
Grant–Loan Investment
Programme (MEGLIP)
• The programme foresees energy efficiency measures for buildings,
district heating systems, street light modernization, energy recovery
from waste water or solid waste, energy efficiency for water pumping
30 and 4.6 m EUR
plants / sewage, biogas production from waste water or solid waste,
grant money from
solar collectors for hot water, biomass fuel or cogeneration for district
EU funds
heating systems, heat pumps, etc.
• The grant component may subsidise up to 20% of loan amount for
environment projects, or 15% of loan amount for energy projects
Ukraine
Promotion of the Social
Infrastructure in Ukraine
through the Ukrainian
Social Investment Fund
(USIF)
24
• Programme foresees the renovation of schools and kindergartens in different regions of Ukraine. Also hospital wards and community centres
can be refurbished or water and wastewater pipelines repaired. The
focus is on energy efficiency: in order to minimise energy costs in the
longer term, roofs and windows are replaced, heating systems modernised and insulation installed.
Source: compiled by the Energy Community Secretariat on the basis of KfW related websites, presentations and publications
40 | ENERGY COMMUNITY SECRETARIAT
B.9. The European Investment Bank (EIB)
Table 10: EIB Support per Contracting Party
EIB Support per
Contracting Party
The European Investment Bank (EIB) is a bank of the European Union that works to promote sustainable growth and
job creation by supporting small and medium-sized enterprises,
regional development, environmental sustainability, energy including energy efficiency and renewable energy, etc.
Contracting Party
The EIB launched a “Green for Growth Fund II” project of 25
million EUR targeting energy efficiency and smaller renewable
energy investments in the South Eastern Europe and Eastern
Neighbourhood regions.
Table 10 presents the allocation of EIB support for the Energy
Community Contracting Parties from this initiative.
The EIB also provides credit lines to finance small/medium
projects carried out by SMEs and public entities in the Energy
Community Contracting Parties in the fields of energy, environmental protection, etc. Starting in 2014, the EIB and the Energy
Community Contracting Parties signed financial agreements
for more than 700 million EUR for these purposes. Additional
Amount of EIB support
Albania
1,875,000 EUR
Bosnia and Herzegovina
1,250,000 EUR
FYR of Macedonia
625,000 EUR
Moldova
1,250,000 EUR
Montenegro
1,250,000 EUR
Serbia
2,500,000 EUR
Ukraine
2,500,000 EUR
Source: EIB website / Projects/Sector/Energy
agreements are expected to be signed in the near future.
Beside this, the EIB cooperates with countries directly allocating
funds for energy efficiency and renewable energy investments
(Table 11).
Table 11: EIB’s Energy Efficiency and Renewable Energy Investment Projects in the Energy Community
EIB’s Energy Efficiency and Renewable Energy Investment
Projects in the Energy Community
Albania, Bosnia and Herzegovina, FYR of Macedonia, Kosovo, Moldova, Serbia, Ukraine, Bulgaria, Georgia, Romania
Project name
Project cost
Description
Total amount: 170 million EUR
Financing of small and medium-sized projects carried out
by small and medium-sized enterprises, public sector entities and other beneficiaries in EIB-eligible sectors of the
economy.
Project name
Project cost
Description
Renewable Energy HPP Vranduk
(signed June 2014)
Total cost (approximate amount):
86 million EUR
Proposed EIB finance (approximate amount): 37.5 million EUR
Construction of a 20 MW hydro power plant on the stretch
of the river Bosna between the towns of Zenica and Nemila.
Project name
Project cost
Description
Renovation of Higher Education Facilities (approved November 2014)
Total cost (approximate amount):
172 million EUR
Proposed EIB finance (approximate amount):108 million EUR
Renovation and modernization of research laboratories and
the rehabilitation of university facilities, with particular focus
on energy efficiency measures.
Astarta Agri-Food and Climate Change
Adaptation (signed October 2014)
Total amount: 50 million EUR
Investments into industrial assets, infrastructure, bio-energy
and production efficiency.
Municipal Infrastructure Framework
Loan (approved May 2015)
Total cost (approximate amount):
800 million EUR
Proposed EIB finance (approximate amount): 400 million EUR
Framework loan for the rehabilitation and upgrading of
municipal infrastructure in Ukraine (energy, water and sanitation sectors) reducing losses, improving energy efficiency,
reducing the intensity of greenhouse gas emissions, and
contributing to the security of energy and water supply.
Procredit Loan for Small and MediumSized Enterprises and Priority Projects II
(under appraisal as of March 2015)
Bosnia and Herzegovina
Ukraine
Source: EIB website / Projects/Sector/Energy
ENERGY COMMUNITY SECRETARIAT | 41
B.10. United States Agency for
International Development
The United States Agency for International Development
(USAID) is a leading U.S. Government agency whose energyrelated mission is to expand access to modern energy services
to power economic and social development. With this goal,
USAID develops and implements programmes that bring about
policy, legal, regulatory and commercial reforms. It has missions, offices or programmes in Albania, Bosnia and Herzegovina, Kosovo*, former Yugoslav Republic of Macedonia,
Moldova, Serbia and Ukraine.
In order to improve the institutional and legislative framework
on energy efficiency, USAID has strongly supported the work
of the Energy Community’s Task Force on Energy Efficiency
(predecessor of the EECG) from the outset. USAID provides a
wide range of technical assistance to the Contracting Parties,
including support on the legal and regulatory framework, main
policies and fulfillment of the EECG Work Programme (see
Table 12). USAID’s support to the EECG Work Programme is
focused on energy efficiency in buildings. This includes drafting
of a programme at national or municipal level, planning, legalregulatory assistance, project preparation, awareness raising
and education.
Table 12: USAID financed Energy Efficiency Projects in the Energy Community
USAID FINANCED ENERGY EFFICIENCY PROJECTS IN THE ENERGY
COMMUNITY
Albania
Clean Energy Project 2010 - 2013
Total Budget: 1,000,000 USD
The programme works with the Government of Albania and the private sector to remove barriers to clean energy development and build
both national and regional capacities for investment and financing in clean energy. The programme is part of a larger regional clean energy programme, in partnership with the European Bank for Reconstruction and Development in the Balkans, Central and Eastern Europe.
Energy Efficiency Project 2011 - 2013
Total Funding: 1,200,000 USD
Technical assistance to support the implementation of Albania’s energy strategy to improve the availability, efficiency, and reliability of
energy supplies at reasonable costs. The programme specifically focuses on strengthening the capacity of the Energy Regulatory Entity
to effectively and independently regulate policies and procedures for tariff setting in compliance with EU directives and based on service
costs, licensing, and energy market developments.
Bosnia and Herzegovina
Enterprise Energy Efficiency (3E) Project 2010 - 2014
Total Funding: 4,500,000 USD
Enterprise Energy Efficiency (3E) promotes and expands the use of clean, safe, and affordable energy efficiency technology in BiH through
pilot projects in buildings. The pilot projects are co-funded by public and private counterparts, including local municipalities, building owners, and small and medium-sized enterprises (SMEs). The 3E project has already implemented more than 17 pilot projects throughout BiH.
Residential Energy Efficiency for Low Income Households (REELIH)
Total Funding: 35,000 EUR
Development of a sustainable mechanism for financing energy efficiency projects in apartment buildings with low income households
(LIH): municipal / cantonal targeted subsidies for LIH - 30% to 50% of the total investment cost.
Kosovo*
REpower Kosovo, 2014 - 2019
Total Funding: 12,000,000 USD
Technical assistance to help overcome the barriers to develop and implement clean energy projects in Kosovo*, and to create an enabling
environment that attracts private investments in the Kosovo energy sector.
FYR of Macedonia
Improving Energy Efficiency for the Housing Sector, 2011-2014
Project budget: 1,500,000 USD
The project increased the standard of living in collective housing units in FYR of Macedonia, through demonstration projects on energy
efficiency improvements that significantly decrease energy consumption and operating cost. The project also provided organizational and
technical support to 12 Homeowners Associations that are upgrading the energy efficiency in their buildings, helping them to increase
their capacity for self-management and become role models for other Homeowners Associations in their municipality.
Municipal and Household Energy Efficiency Development Credit Authority, 2007-2019 Project Budget: 10,000,000 USD in loans
The EE Development Credit Authority facility supports private enterprises, municipalities and energy service companies implementing
energy efficiency projects on behalf of the municipalities and residential households. With it, private enterprises, residential household borrowers and municipalities can finance the acquisition of new energy efficient machinery and equipment, introduction of energy management systems and other energy savings improvements.
Ukraine
Municipal Energy Reform Project (MERP), 2013-2017
Project Budget: 13,000,000 million USD
The goal of the Municipal Energy Reform Programme is to reduce and mitigate greenhouse gas emissions in Ukraine resulting from the
poor use of energy resources, which will lead to strengthened energy security and economic growth. In April 2014, MERP launched partnerships with 17 Ukrainian municipalities.
Source: USAID website / News and Information and USAID, Overcoming Barriers to Financing of Energy Efficiency Implementation in Multi Apartment Building, 18 March 2015
42 | ENERGY COMMUNITY SECRETARIAT
In addition to these flagship projects, USAID Washington’s
Bureau for Europe and Eurasia (E&E) also supports energy efficiency in Ukraine through annual contributions of 1.5 million
USD to the Eastern European Energy Efficiency and Environmental Partnership (E5P) fund, a multi-donor fund managed
by the EBRD.22
B.11. United Nations Development
Programme
The United Nations Development Programme (UNDP) is one of
the largest providers of technical assistance in energy efficiency
in the Western Balkans. Within the Energy Community, Bosnia and Herzegovina (68.9 million USD), Ukraine (25.5 million
USD), Moldova (17.6 million USD) and Serbia (16.3 million USD)
are the prime beneficiaries of UNDP’s support23. One of the
UNDP’s goals is to develop and achieve a reliable and sustainable energy monitoring and reporting system. For this purpose
UNDP has developed the Energy Management Information System (EMIS). EMIS monitors, analyzes and reports on energy
and water consumption in public buildings. The main result is
achieving reliable and sufficient data on energy and emission
indicators of public buildings for local authorities.
Some examples of national programmes supported by UNDP
are listed below.
Bosnia and Herzegovina
UNDPs activities in Bosnia and Herzegovina run under the
Green Economic Development programme (GED). Whilst 2010
– 2013 was marked as a pilot project phase that included
initially raising awareness of energy efficiency in 2013 – 2018,
the focus is on institutions, via a systematic approach to Energy Management Information Systems (EMIS). Under the programme Capacity Building (PC1) & Institutionalization of Energy
Management (PC2), UNDP facilitated the implementation of
EMIS in additional 500 public sector buildings in 2014. A total
of 1,300 Bosnian buildings are now in the EMIS database. In
addition, the UNDP Country Office Bosnia and Herzegovina
organized training courses for 500 EMIS users on energy efficiency and energy management, including 37 detailed energy
audits for public sector buildings.
Serbia
In the UNDP Country Programme Document for Serbia, an enabling framework for environmental and energy management
strengthening was identified as one of the three key priorities
for 2011 - 2015. Serbia’s energy portfolio consists of activities
in renewable energy and energy efficiency.
In Albania, UNDP is working on the establishment of an EcoFund in support of energy efficiency, renewable energy and
environment interventions.24 In parallel to energy efficiency
promotional campaigns in Kosovo*, UNDP is engaged in
efficient public street lighting projects and helping to develop
municipal energy efficiency plans.25
© UNDP BiH, Doboj Heat Plant - Before and After Photos, Uploaded on November 4, 2014
22
23
24
25
Other key projects consist of a Local Alternative Energy Solutions project in Myrhorod (LAESM) and a Development Credit Authority (DCA) aiming to grant
credit guarantees to Ukrainian banks. http://www.usaid.gov/news-information/fact-sheets/clean-energy-programs
UNDP website / Our projects / Reg Bur for Europe and CIS
UNDP, Current activities to promote energy efficiency in Bosnia and Herzegovina (Green Economic Development programme) & short overview of UNDP
activities in other Contracting Parties, presented 17.03.2015, Vienna
UNDP, Current activities to promote energy efficiency in Bosnia and Herzegovina (Green Economic Development programme) & short overview of UNDP
activities in other CPs, page 16, presented 17.03. 2015, Vienna
ENERGY COMMUNITY SECRETARIAT | 43
Table 13: UNDP financed Energy Efficiency Projects in Bosnia and Herzegovina and Serbia
UNDP financed Energy Efficiency Projects
in Bosnia and Herzegovina and Serbia
Bosnia and Herzegovina
Project
Funding
Description
Biomass Energy for Employment and
Energy Security Project, 2009 - 2014
1.12 million USD
Reduction of CO2 emissions by installing biomass boilers in 6
elementary schools in the Srebrenica region
Domestic benefits include job creation, reduced emissions and
improved quality of heating.
Climate Change Facility for Bosnia and
Herzegovina Cities, 2009 -2013
342,500 USD
Supporting the authorities in reducing energy consumption in
public buildings and in redirecting cost savings towards social
sector spending: implementation of EMIS in 9 BiH cities.
Green Economic Development (GED),
2013-2018
SIDA/Swedish Embassy – 3.6
million EUR (2015 - 2017)
Implementation of EMIS in additional 500 public sector buildings (1,300 buildings in EMIS)
Total of 38 energy efficiency pilot projects were implemented
with following results:
Total of 664 man/months of employment achieved by implementation of EE/RES measures that created 350,000 EUR worth
in salaries.
More than 700,000 USD are saved annually thanks to decreased energy consumption costs.
Serbia
Project
Funding
Description
Reducing Barriers to Accelerate Development of Biomass Markets in Serbia,
2014-2018
GEF Funding: 2.85 million USD
Co-funding: 27.63 million USD
Total: 30.48 million USD
Supporting and implementing 6 selected biomass projects (CHP
plants) under the grant mechanism provided by GEF
Energy Efficiency Awareness Raising
for Decision Makers at Local Level in
Serbia, 2011-2012
UNDP Funding: 150,000 USD
Research/baseline survey on energy efficiency awareness at the
local level
Supporting and implementing under the Investment Support
Mechanism 12 additional biomass projects, beyond those which
are partially assisted with GEF funds.
Communication Strategy and training programmes
4 energy efficiency workshops /trainings
46 municipalities signed the Charter of the Cities and Municipalities on Energy Efficiency.
The Guide on Including Energy Efficiency Aspects in Public
Procurement Process.
Introducing Energy Management
Information System (EMIS) in Public
Buildings, 2013- 2014
Funding: UNDP and MoME
Total: 1.045 million USD
Data collection for approx. 150 buildings and testing of EMIS.
New GEF Project Preparation: Removing Barriers to Promote and Support
Energy Management Systems in
Municipalities throughout Serbia,
2014- 2018
GEF Funding: 2.3 million USD
Co-funding: 9.35 million USD
Introduction and implementation of the Municipal Energy Management System in line with the Law on Efficient Use of Energy.
Installation of the automatic metering system with connection
to EMIS for the purpose of online monitoring of electricity, heat
and water consumption.
Promote investments in energy efficiency in public buildings and
municipal services in Serbia.
Source: UNDP Serbia: An Overview of Ongoing Activities in the Field of Energy Efficiency, presented 01.07.2014, Vienna, UNDP in Bosnia and Herzegovina website /Projects/
Energy and Environment and, UNDP, Current Activities to Promote Energy Efficiency in Bosnia and Herzegovina, presented 18.03.2015, Vienna
44 | ENERGY COMMUNITY SECRETARIAT
B.12. Gesellschaft für Internationale
Zusammenarbeit (GIZ)
Gesellschaft für Internationale Zusammenarbeit (GIZ) is one of
the most active donor organisations in the Western Balkans,
either through bilateral or multi-beneficiary programmes.
B.12.1. Open Regional Fund for South-East Europe –
Energy Efficiency
Between 2011 and 2013, the Open Regional Fund for SouthEast Europe – Energy Efficiency (ORF-EE) funded a reciprocal capacity building project on the use of renewable energy
resources and energy efficiency in municipalities of Albania,
Bosnia and Herzegovina, Kosovo*, former Yugoslav Republic
of Macedonia and Serbia.26
ordination between different policy levels in terms of systematic planning and monitoring of implemented projects and
programmes related to energy savings and CO2 emission
reduction.
The heart of the project is the innovative web platform, based
on the bottom-up methodology for calculation of energy savings. Moreover, the designed IT solution turned out to be the
perfect tool for the participant partner countries, since it allows monitoring of the progress in policy implementation at
all levels. The data structure of the web tool allows an arbitrary
number of policy plans to be monitored in one place. Although
originally designed to be the tool monitoring EEAP implementation, it is also applicable for monitoring policy plans at lower
levels such as municipalities, regions, counties – depending
on the administrative structure of the country and the needs
for monitoring.
A similar project on regional training for planning and monitoring energy efficiency measures in the building sector took
place in 2012 – 2013 in Albania, Bosnia and Herzegovina,
Kosovo* and Montenegro. This project trained energy auditors
for buildings and building systems. With the knowledge they
gained, the auditors help to ensure that energy saving materials and processes are used to a greater degree in construction
projects, thereby contributing to a reduction in the region’s
energy consumption.27
The MVP was officially launched in autumn 2014 in Croatia, as
a model for the entire Western Balkans. It is now an obligatory
tool for reporting of implemented projects and the MVP as a
system is defined in the Energy Efficiency Law of the Republic
of Croatia. The official launch in other partner countries is
expected in the second half of 2015. It is to be used as a web
tool for reporting on the second EEAP savings and measures
and also for planning of the new measures in the third EEAP.
Established in 2009, the ORF-EE is the flagship programme of
GIZ in the Western Balkans. The focus of the project is to support
the preparation and monitoring of the Energy Efficiency Action
Plans (EEAPs). The joint work between the EECG members and
the ORF-EE team resulted in “Regional Exchange for Developing Energy Efficiency Monitoring Platforms”, known under the
acronym MVP (Monitoring and Verification Platform). The project became part of the EECG work programme 2013 - 2014
and involved all Western Balkan countries and Croatia. The
long-term vision of the project is to improve the vertical co-
Recognizing the innovative component of the MVP approach,
the European Commission under its Horizon2020 programme
selected for financing the project “multEE”, which aims at disseminating this IT tool for monitoring and verification of energy
efficiency action plans developed for the Western Balkans. The
implementing consortium comprises of nine partner countries
from Northern, Central, Eastern and South Eastern Europe and
is led by GIZ. This is a first known example of ‘exporting’ the
knowledge and know-how from the Energy Community Contracting Parties to EU Member States.
© Open Regional Fund – Energy Efficiency (GIZ), Presenting the MVP at the 3rd Energy Efficiency Coordination Group meeting: November 2013, Vienna
26
27
GIZ website / Regional Cooperation / Renewable energy resources and energy efficiency in municipalities in South East Europe
GIZ website / Regional Cooperation / Regional training for planning and monitoring energy efficiency measures in the building sector
ENERGY COMMUNITY SECRETARIAT | 45
B.12.2. Bilateral Assistance
The Gesellschaft für Internationale Zusammenarbeit (GIZ) is
additionally involved in the Energy Community process through
bilateral projects that promote energy efficiency and renewable
energy. Within the category ‘Energy generation, distribution
and efficiency – general’, GIZ has a total of 11 projects running
in four Contracting Parties. The country that benefits the most
is Ukraine with four large-scale projects (Table 14).
Table 14: GIZ’s Bilateral Energy Efficiency Projects in the Energy Community
GIZ’s Bilateral Energy Efficiency Projects in the Energy Community
Contracting
Party
Project
Total financial
commitment:
Actual Financial
commitment
Project
timeline
Bosnia and
Herzegovina
Advisory and training services for the municipalities and ministries
6,000,000 EUR
4,253,000 EUR
2013 - 2016
Kosovo*
TA on good governance
832,479 EUR
832,479 EUR
2012 - 2014
Advisory service for energy efficiency in Serbia
6,000,000 EUR
2,000,000 EUR
2014 - 2016
Serbia
Development of a sustainable bioenergy market; technology
partnership
8,050,000 EUR
8,050,000 EUR
2013 - 2017
TA on appropriate energy management, joint ventures between
municipalities advised by a pool of international experts
4,000,000 EUR
2013 - 2016
3,000,000 EUR
2014 - 2017
Pilot project to showcase energy efficient construction (51,000 m
residential and office complex)
4,500,000 EUR
2009 - 2016
Energy efficiency in industry
3,000,000 EUR
2011- 2015
Ukraine
Assisting two regions to set up and pilot energy agencies
2
Source: GIZ website, Worldwide/Project data and, GIZ Ukraine Office
© Open Regional Fund – Energy Efficiency (GIZ), The GIZ representatives at the 3rd Energy Efficiency Coordination Group meeting, November 2013, Vienna
46 | ENERGY COMMUNITY SECRETARIAT
ENERGY COMMUNITY SECRETARIAT | 47
Glossary
CEB
CHP
EBRD
EE
EEAPs
EECG
EED
EIB
ELD
EMIS
ENI
ENP
EPBD
ESCO
ESD
EU
E5P
GDP
GGF
GIZ
IEA
IFIs
INOGATE
IPA
IPF
IT
KfW
MVP
NIF
NIB
NEFCO
ORF-EE
PPP
REEP
RES
SHPP
SMEs
SIDA
TA
UNDP
USAID
WBIF
WeBSEDFF
WeBSEFF
Council of Europe Development Bank
combined heat and power
European Bank for Reconstruction and Development
Energy Efficiency
Energy Efficiency Action Plans
Energy Efficiency Coordination Group
Energy Efficiency Directive 2012/27/EU
European Investment Bank
Directive 2010/30/EU on the Indication by Labelling and Standard Product Information of the Consumption of
Energy and Other Resources by Energy-Related Products
Energy Management Information System (UNDP)
European Neighbourhood Instrument
European Neighborhood Policy
Directive 2010/31/EU on the Energy Performance of Buildings
energy service company
Directive 2006/32/EC on Energy End-Use Efficiency and Energy Services
European Union
Eastern Europe Energy Efficiency and Environment Partnership Fund
gross domestic product
Green for Growth Fund
Gesellschaft für Internationale Zusammenarbeit
International Energy Agency
International Financial Institutions
international energy co-operation programme between the European Union (EU), the littoral states of the Black
and Caspian seas and their neighbouring countries
Instrument for Pre-Accession Assistance
Infrastructure Projects Facility (WBIF)
Information Technology
KfW Development Bank
Monitoring and Verification Platform (GIZ)
Neighbourhood Investment Facility
Nordic Investment Bank
Nordic Environmental Financial Corporation
Open Regional Fund for South-East Europe – Energy Efficiency (GIZ)
power purchase parity
Regional Energy Efficiency Programme
Renewable Energy
small hydropower plant
small and medium-sized enterprises
Swedish International Development Agency
technical assistance
United Nations Development Programme
United States Agency for International Development
Western Balkans Investment Framework
Western Balkans Sustainable Energy Direct Financing Facility
Western Balkans Sustainable Energy Financing Facility
48 | ENERGY COMMUNITY SECRETARIAT
Energy Community Secretariat (ECS)
Am Hof 4, 1010 Vienna, Austria
Phone: 0043 (0)1 535 2222
Fax: 0043 (0)1 535 2222 11
Email: contact@energy-community.org
Web: http://www.energy-community.org