ATEB was supporting partner of the event “Achieving Bulgaria`s Energy Efficiency Targets by 2020”, part of Energy Managers` Forum organized by Utilities Magazine. The highlights of the event were captured in the article of 3e-news:
Continues the search for an efficient, functioning mechanism for financing of energy efficiency measures by the obligated parties. So far, two options are being considered – one is financing through the Security of the electricity system fund, the other through tradable certificates. There are currently 189 obliged parties in the country with set energy efficiency targets.
Of course, everything is at a very early stage, but the issue is extremely important as the first reporting period ends in 2020 (Directive 2012/27 / EU (2014-2020) and commitments are pending for new targets for a much longer period. For comparison, if the national cumulative target for the first period 2014-2020 was to achieve energy savings of 1 942.7 ktoe, the new target for the period 2021-2030, will be 4 263.07 ktoe according to the Sustainable energy development agency (SEDA).
In addition, a week ago, Bulgaria requested a derogation from Europe for the implementation of the National Energy Savings Plan, in particular under the energy efficiency obligation scheme, explained Deputy Minister of Energy Zhecho Stankov. The intention was declared back in August. The reason is that this scheme was put in place about three years earlier than the relevant European directive. In Bulgaria, the energy efficiency obligation scheme is implemented through a combination of individual energy savings targets for energy traders and alternative measures. To date, Bulgaria is experiencing difficulties in implementing properly the energy efficiency obligation scheme. For the 2014-2018 period, the country met 48.4% (935 ktoe) of the total target of 1942.7 ktoe for energy savings.
Currently, the scheme relies mainly on energy savings made under the alternative measures, as obliged parties face serious difficulties in financing such measures.
The Executive Director of SEDA Ivaylo Alexiev stated during his presentation that in the period 2019 – 2020, alternative measures include energy efficiency improvement in large enterprises and the financial mechanism for the European Economic Area. He drew attention to the building stock with the potential for energy savings under different types of measures – from RES and insulation to the replacement of glazings. Household sector is highly underestimated, however, with an extremely high share in the use of electricity – 42 percent. Examples of energy efficiency measures in this sector were the need to improve the energy performance of the existing housing stock, more efficient heating systems, expand gasification, and encourage the purchase of energy efficient appliances. Transport measures are extremely urgent, but some of them require very high investments, the head of SEDA admitted.
Ivanka Dilovska of the Energy Management Institute described the results of implementing the Energy Efficiency Obligation Scheme in ten European countries, in four of them the risk of failure to meet the targets is high. The Energy Efficiency Obligation Scheme is one of the instruments, but the relevant directives also provide other possibilities as alternative policies. Hence, each party must consider what is the most effective implementation measure.
“The scheme is being distributed – from 6 to 15 countries currently, but 3 countries are leaving it. In 5 countries, there is a risk of failure. The objectives of the most successful schemes (Denmark and the United Kingdom) have been significantly reduced due to the increasing cost of measures and public disapproval. Denmark is considering giving up the EEOS. The measures are becoming more expensive and public dissatisfaction against them is rising because of rising prices for end users, the expert explained, adding that most countries are at risk of failure, and for those not at risk, it is because they started with low targets, voluntary phase, low prices.
We have a high risk of failure. There is no funding for the measures. Obliged parties do not have a source of funding to fulfill their individual goals, further commented Ivanka Dilovska. She cites a request from the European Commission with recommendations from September – the financing mechanism of obliged parties should be designed, before even the system is set in place.
It should be clear where the money for the obliged parties will come from, Dilovska said, adding that, for example, the Security of the electricity system fund, which also includes emission revenues, could allocate approximately one percent to support the obliged parties. The expert recommended starting to estimate the costs in order to target public funds, interact with other policy measures, and to start with lower targets.
Mr. Ikonomov, of the Association of traders with electricity (ATEB), commented on the possibilities for implementing the energy efficiency measures, explained that there is no market for energy savings certificates at this stage. Supply is from a very limited number of “players” in the potential market for energy savings certificates. Energy savings certificate holders` expectations are not realistic, he said, noting the inability of electricity traders to provide the necessary funds to meet the targets by purchasing energy savings certificates due to the unrealistically high expectations of their holders. In addition, this non-market approach distorts the basic idea, he said. According to him, instead of focusing on real consumption reduction through energy efficiency measures the owners of industrial systems are expecting serious revenue from the sale of certificates.
Kalina Trifonova from EVN said that the main obstacle for the obliged parties is the lack of a clear and transparent mechanism for financing the measures.
The full article is available at: 3e-news website
Source: 3e-news