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Bulgaria, with one of the most energy intensive economies in Eastern Europe, imports approximately 60% of its energy resources. Before 1990s, the Bulgarian government maintained artifitially low energy costs, subsidizing energy-intensive industries. However, in; 1999 the National Assembly adopted the Bulgaria Energy & Energy Efficiency Law aimed at creating incentives for consumers to reduce energy waste. The Alliance and the Center for Energy Efficiency (EnEffect), its partner organization in Sofia, worked within the context of new legislation to disseminate information on successful energy efficiency initiatives for replication throughout Bulgaria.
Awareness Building
EnEffect drafted a series of papers which analyzed the major obstacles for energy efficiency project implementation in Bulgarian cities. The first paper titled "Major Barriers to Implementation of Energy Efficiency Projects by Bulgarian Municipalities" primarily focused on impediments within national policy. It examined federal laws which influence the authority and operation of municipalities. EnEffect prepared a list of strategies for circumventing the various barriers, making policy recommendations. These were presented to the national government by politically-active municipal association of Bulgaria. To increase awareness, the papers were distributed to MEEN members. Visit the MUNEE website for final versions of all the EnEffect papers, including a potential strategy for investors interested in rehabilitating municipal infrastructure. Relying on information and data from the papers, the Alliance EnEffect issued targeted recommendations to Bulgarian Ministries and to the Parliament.
Creating a Network
EnEffect is taking the lead in developing the Municipal Energy Efficiency Network (MEEN) of Bulgaria. This newly-developing network of cities, based in part on the Polish Network for Energy Cities (PNEC), is becoming the conduit through which information from the MUNEE program will be disseminated.
Microcredit as a Finance Option in Bulgaria
While many municipalities would like to develop large-scale energy efficiency projects and may wait years for this to happen, smaller projects may be feasible now. The Alliance and EnEffect will analyze the potential of small enterprises and microcredit funds to lend to city governments or ESCOs for energy efficiency projects. The goal is to help smaller cities and emerging energy efficiency businesses build a credit record for future project financing. EnEffect and MUNEE will develop a pipeline of small projects (under $100,000), assist cities and small lenders in developing a sound financial plan, and try and build a replicable record of small lending -- one that does not depend on huge sovereign loans from institutions like the World Bank. The objective will be to channel local financial resources, no matter how small, into an emerging market for energy efficiency finance. The lessons of this work will be disseminated though the MUNEE network. Our first step will be to identify and interview all of the microcredit and SME funds in Bulgaria and hold a joint meeting with municipal representatives and small energy-related businesses.
RENEUER
The objective of the Regional Network for Efficient Use of Energy and Water Resources (RENEUER) is to promote the creation of a favorable investment climate and market conditions for implementation of projects for energy and water efficiency improvements in Southeast European countries. This project will focus on five main components: formulation and coordination of efficiency policies, capacity building for the appropriate institutional environment, introduction of appropriate financial tools, information dissemination, and coordination of the efforts of various players in the region. For more information, visit the RENEUER website.
Success Stories
Through the MUNEE program, EnEffect will document success stories in Bulgaria, such as Pernik - a city that overcame all of the financing obstacles to develop a large energy efficiency project, obtain collateral and take out a loan - something few cities have done. This lesson will include a description of each barrier and a recommended list of steps to overcome each problem - a "how-to" guide for Bulgarian cities. EnEffect will also bring together MEEN members for trainings on energy planning, project finance and other issues.
For more information about MUNEE Bulgaria, visit MUNEE.org or contact:
Angela Morin
Alliance to Save Energy
amorin@ase.org
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