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
PREFACE 5 EXECUTIVE SUMMARY 6 I. ENERGY COMMUNITY TREATY AND ENERGY EFFICIENCY 9 II. FROM LAWS TO INVESTMENTS: OPPORTUNITIES FOR ENERGY EFFICIENCY FINANCING 19 GLOSSARY 48 Energy Community Secretariat 2 ENERGY COMMUNITY SECRETARIAT
ENERGY COMMUNITY SECRETARIAT 3 FIGURES TABLES
The Energy Community is an international organisation dealing with energy policy founded by the Energy Community Treaty, which entered into force in July 2006. AlbaniaBosnia and HerzegovinaKosovo former Yugoslav Republic of MacedoniaMoldovaMontenegroSerbia Ukraine 4 ENERGY COMMUNITY SECRETARIAT
1 ENERGY COMMUNITY SECRETARIAT 5
International Financial Institutions acquis etcenergy Service Companie energy applications International Financial Institutions Neighbourhood Investment Facility and Eastern. 6 ENERGY COMMUNITY SECRETARIAT
Key Messages 1. 2. integrative approach etc. 3. i.e. International Financial Institutions nancial market segment 5. European Bank for Reconstruction and DevelopmentEuropean Investment World Bank KfW 6. development aid programmes of bilateral and multilateral agencies. energy sector reforms reduce energy bills ENERGY COMMUNITY SECRETARIAT 7
8 ENERGY COMMUNITY SECRETARIAT
I. ENERGY COMMUNITY TREATY AND ENERGY EFFICIENCY ENERGY COMMUNITY SECRETARIAT 9
2. International Energy Agency As an energy re- taneously 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 re- 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 Asset values Energy savings GHG emissions Disposable income Energy security Public budgets Energy delivery Resource management Energy efficiency improvement Energy prices Local air pollution Macroeconomic impacts Employment Health and well-being Poverty alleviation Industrial productivity 2 3 10 ENERGY COMMUNITY SECRETARIAT
Final Energy Consumption in 2013 2.5 2.0 EU-28 1.5 1.5 0.5 0.716 0.906 0.700 0.835 0.567 1.120 1.161 1.421 1.248 0 Albania Bosnia and Herzegovina Kosovo* FYR of Moldova Montenegro Serbia Ukraine Macedonia Energy Community Energy Intensity of the Economy 700 600 646 500 522 400 300 200 203 409 334 255 290 235 331 100 0 EU-28 Albania Bosnia and Herzegovina Kosovo* FYR of Moldova Montenegro Serbia Ukraine Macedonia Energy Community ENERGY COMMUNITY SECRETARIAT 11
350 Energy intensity of the economy, adjusted to PPP 300 296 250 239 200 196 150 100 86 146 105 139 114 157 50 EU-28 0 Albania Bosnia and Herzegovina Kosovo* FYR of Moldova Montenegro Serbia Ukraine Macedonia Energy Community Eco Ltd 5 5 12 ENERGY COMMUNITY SECRETARIAT
6 mains what are we collectively doing to enable, promote, investments? ENERGY COMMUNITY SECRETARIAT 13
B. ENABLING LEGAL FRAMEWORK FOR ENERGY EFFICIENCY acquis Title of Document General Implementation Deadline 14 ENERGY COMMUNITY SECRETARIAT
B.1. Working Together - International Financing Institutions UNDP, UNIDO, UNECE Acquis acquis ENERGY COMMUNITY SECRETARIAT 15
Transposition of the Energy Service Directive in the Energy Community 100% 80% 60% 40% 20% 0% Albania Bosnia and Herzegovina Kosovo* FYR of Moldova Montenegro Serbia Ukraine Macedonia Transposed Draft Pending International Financial. 100% Transposition of the Energy Performance of Buildings Directive in the Energy Community 80% 60% 40% 20% 0% Albania Bosnia and Herzegovina Kosovo* FYR of Moldova Montenegro Serbia Ukraine Macedonia Transposed Draft Pending 16 ENERGY COMMUNITY SECRETARIAT
- United States Agency European Bank Transposition of the Energy Labelling Directive in the Energy Community 100% 80% 60% 40% 20% 0% Albania Bosnia and Herzegovina Kosovo* FYR of Moldova Montenegro Serbia Ukraine Macedonia Transposed Draft Pending i.e. acquis status quo. acquis ENERGY COMMUNITY SECRETARIAT 17
18 ENERGY COMMUNITY SECRETARIAT
OPPORTUNITIES FOR ENERGY EFFICIENCY FINANCING ENERGY COMMUNITY SECRETARIAT 19
A. OVERVIEW acquis 8 IFIs IFIs EECG s acquis 30.80 95.00 5.50 3.80 74.00 100.00 92.00 332.00 GGF EBRD WeBSEFF EBRD WeBSEDFF World Bank EE Finance EEFF2007 (KfW & CEB) KfW EE finance GIZ EE finance UNDP Total EE finance: 733,6 million EUR 8 20 ENERGY COMMUNITY SECRETARIAT
Funds already committed to projects ( million) Amounts available ( million) 3.8 5.5 74 37.1 171 5.4 12.6 13.9 159 57.9 25.4 87.4 78.2 Total: 228 million EUR Total: 502 million EUR GGF EBRD WeBSEFF EBRD WeBSEDFF World Bank EE Finance EEFF2007 (KfW & CEB) KfW EE finance GIZ EE finance UNDP etc. IT IS NOT ALL ENERGY COMMUNITY SECRETARIAT 21
B. MAIN FINANCING INITIATIVES AND TECHNICAL ASSISTANCE PROGRAMMES International Financial Institutions International Financial Institutions WBIF In- WBIF 10 WBIF 11 11 22 ENERGY COMMUNITY SECRETARIAT
WBIF s Grants for Investment Preparation Contracting Party Bosnia and Herzegovina Kosovo* Serbia Project Budget ENERGY COMMUNITY SECRETARIAT 23
Programme for the Western WBIF European Western Balkans Joint FundEuropean Bank for Reconstruction and Development REEP Overview Objective Window 2 Window 3 WeBSEFF II WeBSEDFF (extension) Window 1 ESCO Energy Service Companies (ESCOS) Policy dialogue support EBRD Western Balkans Sustainable Energy Direct Financing Western Balkans Sustainable En- 12 24 ENERGY COMMUNITY SECRETARIAT
Energy Services Company ESCOs ESCOs. v. ESCOs. 2 13 ESCOs 1. 2. 3. EUR Western Balkans Joint FundEBRD. ENERGY COMMUNITY SECRETARIAT 25
WeBSEFF WeBSEFF EBRD WeBSEFF 2 15 EBRD WeBSEFF II WeBSEFF II EBRD WeBSEFF I Bosnia and Herzegovina EBRB WeBSEFF II Renewable Energy Renewable Energy NLB Tutunska Bank, Societe Generale Bank Ohridska Bank, UniCredit Bank FYR of Macedonia Raiffeisen Bank UniCredit Bank Renewable Energy Renewable Energy 26 10 2 Raiffeisen Bank Raiffeisen Bank Serbia Ohridska Bank, NLB Tutunska Bank Renewable Energy Renewable Energy 2 Raiffeisen Bank, Banca Intesa Societe Generale Bank Banca Intesa 26 ENERGY COMMUNITY SECRETARIAT
WeBSEFF I and II 2 BOSNIA AND HERZEGOVINA Plastics Manufacturing Company Improvement of Production Facilities PROJECT FINANCIAL STRUCTURE EUR Total project value 639,000 WeBSEFF EBRD IMPACT former Yugoslav Republic of MACEDONIA Confectionary Manufacturer Rehabilitation PROJECT FINANCIAL STRUCTURE EUR Total project value 904,000 WeBSEFF EBRD IMPACT CO 2 ENERGY COMMUNITY SECRETARIAT 27
SERBIA PROJECT Victoria Group European Bank for Reconstruction and Develop- Victoria Group FINANCIAL STRUCTURE Total project value 45 EBRD 5 Total project value 10 Sustainable Energy Initiative Loans 10 TECHNICAL ASSISTANCE EXPECTED IMPACT 2 28 ENERGY COMMUNITY SECRETARIAT
WeB- SEDFF s ESCO WeBSEDFF EBRD 2 Contracting Party Project Total project value EUR) Albania Bosnia and Herzegovina Kosovo* FYR of Macedonia by EBRD EUR) Type (EE/RES) 10.3 6.0 RES 3.0 RES 6.8 5.2 RES 6.0 RES Total 39.6 20.2 11.1 6.0 RES Total 16.5 1.4 2.5 RES 11.6 6.0 RES 1.5 1.3 EE 8.2 6.0 RES 6.3 3.0 RES 6.0 RES 2.2 RES Total 59 49 Serbia 5.5 RES Western Balkans Sustainable Energy Direct Funding Facility Projects in the Contracting Parties Total 117.6 55.9 IFIs GGF ENERGY COMMUNITY SECRETARIAT 29
Eu- GGF GGF GGF s Technical Assistance Facility GGF s 6 (% based on portfolio outstanding over total assets) Southeast Europe Region (SEE) No of PIs 44 58 Turkey Croatia Serbia Albania Bosnia and Herzegovina FYR of Macedonia 16% 11% 7% 5% 5% 26% 4 2 4 2 3 1 European Neighbourhood Region (ENR) No of PIs 15 7 Armenia Azerbaijan Georgia Ukraine Moldova 6% 6% 4% 2% 0% 4 2 2 1 1 Capacity Development of Financial Institutions (FIs) Capacity Development of Non-Financial Institutions (NFIs) Awareness Raising & Market Enabling Impact Analyses & Energy Audits Research & Analyses TOTAL PORTFOLIO 252.4 million EUR GGF Development Performance Sub-loan Disbursements since Fund s Inception Total 13,020 159.2 million EUR 850,063 CO 2 2 218,304 30 ENERGY COMMUNITY SECRETARIAT
South East European Contracting Parties Contracting Party Max. Issue amount Energy saved Co 2 reduced Sub-loans Albania Bosnia and Herzegovina FYR of Macedonia Serbia 2 2 2 2 53 GGF s BOSNIA AND HERZEGOVINA PROJECT FINANCIAL STRUCTURE Total project value 10 The Green for Growth Fund 10 IMPACT 2 ENERGY COMMUNITY SECRETARIAT 31
SERBIA PROJECT Intesa Leasing Green for Growth Fund FINANCIAL STRUCTURE Total project value 5 The Green for Growth Fund 5 IMPACT 2 32 ENERGY COMMUNITY SECRETARIAT
. EBRDEIB KfW NIF East NIF NIF NIFNIF East NIF NIF establishing better and more sustainable energy and transport inter- use of renewable energy sources, strengthening energy security integration, and supporting investments related to the implementation of EU agreements, including DCFTAs 16 NIF Green for EBRDEIB KfW NIF porate SectorEBRD NIF s EBRD NIF 2 NIFEBRD NIF - EBRD EBRD EIB Nordic Environmental Council of Europe Development World Bank. Swedish International 16 ENERGY COMMUNITY SECRETARIAT 33
- E5P Projects in Ukraine Project Name ESCOs Funding EBRD SIDA EBRD SIDA EBRD EBRD EBRD CTF EBRD 2 2. NEFCO NEFCO SIDA NEFCO SIDAUSAID NEFCO SIDA EBRDCTF NEFCO B.6. INOGATE INOGATEINOGATE INOGATE Sustain- Supporting sustainable energy development, includ- energy and demand side management; 34 ENERGY COMMUNITY SECRETARIAT
World Bank World Bank 18 World Bank s World Bank s Total Project Cost Results Indicators 85 32 million USD Total Project Cost Results Indicators FYR of Macedonia Sustainable Energy GEF Project 32.5 million USD Total Project Cost Results Indicators 8.2 million USD Total Project Cost Results Indicators 61.1 million USD Total Project Cost Results Indicators 61.1 million USD 18 ENERGY COMMUNITY SECRETARIAT 35
i.e. Total Project Cost Results Indicators 49 million USD 2 Total Project Cost Results Indicators 382 million USD Total Project Cost Results Indicators 200 million USD World Bank 20 Work Bank World Bank. World Bank World Bank World Bank Fund 21 20 21 36 ENERGY COMMUNITY SECRETARIAT
SERBIA PROJECT World Bank FINANCIAL STRUCTURE Phase 1 Phase 2 Project value 25 International Development Agency loan 21 Project value 30 International Development Agency loan International Bank Reconstruction and Development loan Total project value 55 IMPACT 10 18 ENERGY COMMUNITY SECRETARIAT 37
UKRAINE Dniprovskyi Poultry Complex, Zaporizhzhya Region PROJECT FINANCIAL STRUCTURE Total investment 8.1 World Bank loan 6.3 IMPACT 3 UKRAINE Ivano-Frankivsk Cement, Ivano-Frankivsk Region PROJECT FINANCIAL STRUCTURE Total investment 93 World Bank loan Ivano-FrankivskCement EXPECTED IMPACT 2 38 ENERGY COMMUNITY SECRETARIAT
MOLDOVA Gymnasium-kindergarten, Carpineni Village, Hincesti District PROJECT FINANCIAL STRUCTURE EUR Total investment 90,765 IMPACT 2 MONTENEGRO } PROJECT } } FINANCIAL STRUCTURE EUR Total cost 487,710 International Bank for Reconstruction and Development loan IMPACT } ENERGY COMMUNITY SECRETARIAT 39
KfW KfW Development Bank Contracting Party Albania Project KfW Loan Kosovo* 10 Moldova Montenegro Serbia Ukraine (MEGLIP) (USIF) 12 13 Results 2 2 a etc. 40 ENERGY COMMUNITY SECRETARIAT
etc. EIB Green for Growth Fund II EIB EIB etceib Albania Contracting Party Bosnia and Herzegovina FYR of Macedonia Moldova Montenegro Serbia Ukraine EIB Support per Contracting Party Amount of EIB support EIB Albania, Bosnia and Herzegovina, FYR of Macedonia, Kosovo, Moldova, Serbia, Ukraine, Bulgaria, Georgia, Romania Project name Project cost Description Bosnia and Herzegovina Project name Project cost Description Ukraine EIB Project name Project cost Description Projects in the Energy Community EIB EIB EIB ENERGY COMMUNITY SECRETARIAT 41
The United States Agency for International Development USAID USAID USAID USAID s Albania Clean Energy Project 2010-2013 USAID FINANCED ENERGY EFFICIENCY PROJECTS IN THE ENERGY COMMUNITY Total Budget: 1,000,000 USD European Bank for Reconstruction and Development Total Funding: 1,200,000 USD Bosnia and Herzegovina Total Funding: 4,500,000 USD Total Funding: 35,000 EUR Kosovo* REpower Kosovo, 2014-2019 Total Funding: 12,000,000 USD FYR of Macedonia Project budget: 1,500,000 USD Homeowners Associations Homeowners Associations Project Budget: 10,000,000 USD in loans EE Development Credit Authority Ukraine Municipal Energy Reform Project (MERP), 2013-2017 Project Budget: 13,000,000 million USD 42 ENERGY COMMUNITY SECRETARIAT
USAID Washington s - EBRD. 22 Programme 23 -. Bosnia and Herzegovina En- Serbia Eco- Fund 25 22 23 25 ENERGY COMMUNITY SECRETARIAT 43
Bosnia and Herzegovina Project Funding Description Serbia SIDA/Swedish Embassy 3.6 Project Funding Description in Bosnia and Herzegovina and Serbia GEF GEF 2 ) GEF GEF Communication Strategy - agement System 44 ENERGY COMMUNITY SECRETARIAT
Gesellschaft für Internationale Zusammenarbeit Open Regional Fund for South- 26 ORF-EE GIZ ORF-EE- 2. Horizon2020 multee GIZ 26 ENERGY COMMUNITY SECRETARIAT 45
Energy generation, distribution GIZ Contracting Party Bosnia and Herzegovina Project commitment: Actual Financial commitment Project timeline Kosovo* Serbia Ukraine 2 46 ENERGY COMMUNITY SECRETARIAT
ENERGY COMMUNITY SECRETARIAT 47
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