Energy Efficiency challenges and European Commission assistance in Western Balkan

Nicola Bertolini
Head of Operations Section

Intro
ENERGY COMMUNITY TREATY (ECT) Established in October 2005 Following the ratification and notification process, ECT entered into force on 1 July 2006 The mission of the ECT is implementation of the acquis communitaire in the field of energy.

Transposition requirements in short

Most important Directives and Regulations, which deal with electricity and gas, to transpose are: Directive 2003/54/EC, Directive 2003/55/EC, Regulation 1228/2003/EC and 1775/2005 In the light of energy efficiency, dedicated Task force on Energy Efficiency has been created under the umbrella of ECT. Key Directives related to energy efficiency: 2002/91/EC on the energy performance of the buildings, 2002/32/EC on energy end-use efficiency and energy services, 92/75/EEC on the indication by labeling and standard product information of the consumption of energy and other resources by household appliances, 2005/32/EC establishing a framework for the setting of eco-design requirements for energy-using products

Energy Efficiency activities

EC supported Energy Efficiency programmes: National projects implemented under CARDS programme and IPA instrument:
CARDS 2003 Technical Assistance to the Energy Efficiency Unit IPA 2007 Support to implementation of Energy Community Treaty

Multi-Beneficiary Programmes
Energy Efficiency Finance Facility (EEFF)

Results of CARDS 2003

Proposed EE Action Plan up to 2012. Work (Action) Plans for 2007, 2008 Creation of a data base of energy consumers and consumption in the public sector. Identification of EE measures. Strategy for space heating and cooling in the residential sector

Main tasks of IPA 2007

Harmonization of Existing Energy Efficiency Regulations, Standards and Procedures Development of New Energy Efficiency Regulations, Standards and Procedures Establishment of an Energy Efficiency Statistical and Information System Preparation and Implementation of the National Energy Efficiency Action Plan (NEEAP) and Establishment of an Energy Efficiency Monitoring and Verification System Preparation and Implementation of Capacity Building, Information Dissemination and Awareness Raising Campaign

Main features of EEFF

Directive on energy end-use efficiency and energy services (April 2006)

Demonstration effect of the Public sector Definition of energy efficiency and energy savings:
Measurement of energy efficiency before and after the investment

Importance of energy audits to implement effectively energy efficiency measures

Focus on SMEs and Public sector

Main features of EEFF

Straightforward approach
energy saving reduction of CO2 emissions

Objectives and eligibility criteria defined in cooperation with DG TREN Implementation and monitoring by the Commission
Approval of Consultancy and Financial Intermediary projects on a case by case basis

Main features of EEFF

With 3 IFIs: EBRD, EIB, CEB-KfW Total EU incentives: 34.7 million IFI credit lines: at least 140 million Implementation: start in June 2008

Main features of EEFF

Eligible Financial Intermediaries:

Local banks and leasing companies

Eligible End-Users
Private and Public entities in the industry sector (SMEs) or the building sector (SMEs, Municipalities,Public Sector)

Eligible investments
Building sector: thermal insulation, lighting Industry sector: machinery, process heat

Main features of EEFF

Maximum size of investment cost: 5 million Possibility of renewable energy projects

Technical criteria based on energy efficiency

+ 30% at least in the Building sector + 20% at least in the Industry sector No reference to energy prices Easy to manage even for non specialists

Implementation of EEFF

Consultancy projects
Definition and preparation of projects in considering the specificities of each country Providing Technical Assistance / Energy Audits/feasibility studies (international and local experts)

Financial Intermediary projects

Combination of EU grants and IFI credit lines (leverage effect) Financial Intermediaries on-lend to end end-users

Implementation of EEFF

EU incentives to finance:
Consultancy costs Administration Fees to compensate the Financial Intermediaries for the restrictive use of Funds Investment incentives to improve the costeffectiveness of the equipment and make it more attractive Investment incentives: 20% - 25% of the investment cost

Conclusions
Montenegro will make significant progress in transposition of EU Directives by adoption of new Energy Law and Energy Efficiency Law. European Commission is strongly supporting Energy Community Treaty and its first task, implementation of the acquis communitaire Energy saving measures needs to be applied in all fields of our lives Maximised use of Renewable Energy Sources Climate Change is a top priority for the European Union Video RES.mpg