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Energy Efficiency for Sustainable Development of Municipalities

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Energy Efficiency for Sustainable Development of Municipalities Energy Efficiency for Sustainable energy efficiency demonstration zone in gabrovo energy efficiency Development of Municipalities Energy Efficiency Strategy to Mitigate GHG Emissions. Energy Efficiency Demonstration Zone in the City of Gabrovo, Republic of Bulgaria EnEffect is a non-profit NGO, founded in 1992, with the aim to support the efforts of the central and local authorities for attainment of sustainable development of the country through more efficient energy use. To contribute to the formulation of a policy for efficient use of energy resources at all management levels. To support local institutional and human capacity building as a prerequisite for initiation, development and implementation of energy efficiency programs. OBJECTIVES To promote the development of a local market for energy saving technologies, products, materials and services. To assist the exchange of experience and information aimed at improvement of energy efficiency. Overcoming of all barriers to energy efficiency in Bulgarian municipalities and creation of incentives for energy conservation. Development and management of investment and demonstration projects for energy conservation. PRIORITIES Development of municipal and regional energy efficiency programs. Provision of education and training in the field of rational use of energy. Collection, processing and distribution of information on energy efficiency. Energy efficiency for sustainable development PARTNERS AND DONORS State bodies, local authorities, research and training centers, universities, companies and NGOs in Bulgaria. Consultancy companies, institutes and NGOs from Europe and the USA. The Global Environment Facility, the US Agency for International Development, the European Commission, the UN Economic Commission for Europe, the United Nations Development Programme, the Regional Environmental Centre, West European governments. NATIONAL AND INTERNATIONAL NETWORKS EnEffect is acting as Secretariat of the Regional Network for Efficient Use of Energy and Water Resources in Southeast Europe (RENEUER). Members of RENEUER are municipalities, NGOs and companies from Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Macedonia, Moldova, Romania and Serbia and Montenegro. EnEffect is acting as Secretariat of the Municipal Energy Efficiency Network EcoEnergy, whose mem- bership by 2003 comprises 159 municipalities as member minicipalities or associated members. EnEffect is part of a network of similar energy efficiency centers in Poland (FEWE), the Czech Republic (SEVEn), Russia (CENEf), China (BECon) and Ukraine (ArenaECO). For contacts: Center for Energy Efficiency EnEffect www.eneffect.bg Tel. (+359 2) 963 1714, 963 0723, 963 2169; Fax (+359 2) 963 2574 E-mail: [email protected] Mailing address: 1606 Sofia, P.O.Box 85 Office: 1164 Sofia, 1, Hristo Smirnensky Blvd., fl. 3 Global Environment Facility / United Nations Development Programme ENERGY EFFICIENCY FOR SUSTAINABLE DEVELOPMENT OF MUNICIPALITIES Energy Efficiency Strategy to Mitigate GHG Emissions. Energy Efficiency Demonstration Zone in the City of Gabrovo, Republic of Bulgaria Final report on the results from project implementation (1998 - 2004) Sofia, 2004 Energy Efficiency for Climate Protection On October 6, 1996 in New York the Executive Council of the Global Environment Facility (GEF) approved the application of Bulgaria for a grant financing to the amount of USD 2.5 million for the project "Energy Efficiency Strategy to Mitigate GHG Emissions. Energy Efficiency Demonstration Zone in the City of Gabrovo, Republic of Bulgaria". The project was initiated and developed by the Center for Energy Efficiency EnEffect, in active collabora- tion with the Ministry of Environment and Water, the United Nations Development Programme (UNDP), the US Agency for International Development (USAID), the Municipality of Gabrovo and other local and inter- national institutions and experts. The GEF Executive Council evaluated highly the Bulgarian project and recommended it as a model for other countries when preparing proposals of this kind in the future. The implementation of the project started in May 1998 and is scheduled to terminate at the end of April 2004. It became broadly known by its abbreviat- ed name "Energy Efficiency Demonstration Zone in Gabrovo" and gained popularity both inside Bulgaria and far beyond the frontiers of the country. Its value consists above all in the fact that it views and uses demonstrations in a single municipality as a tool to test and apply the policy for efficient use of energy resources and for sustainable development. The achievement of these objectives leads to significant and lasting reduction of GHG emissions. Although it is implemented in one specific municipality, the project is of nation-wide importance. In the process of its implementation Gabrovo has turned into a peculiar laboratory, in which the planned demonstration proj- ects are implemented and concrete steps are made for integration of the results from them into the local authorities' policy for sustainable develop- ment of the municipality and the district. Local human and institutional build- ing is the core of project activities. Apart from the technical lessons learned and the direct economic benefits which they produce, the demonstrations have developed into a component part of the entire sustainable-develop- ment-oriented policy of the municipality and have mobilised public support for this policy. In this way a model of masterful integration of the policy with practical investment activities was created. Through the mechanisms provid- ed by the Municipal Energy Efficiency Network EcoEnergy, as early as in the course of project implementation its major results were disseminated among and replicated in many of the Network member-municipalities. Besides the GEF, inputs to project financing were made also by the Municipality of Gabrovo, the National Environmental Protection Fund and the US Agency for International Development. As a result from masterful co-ordi- nation, parallel financing was procured in the framework of programmes of the World Bank and the European Commission (PHARE). In the process of implementation, the project was co-ordinated with a number of other projects and programmes having similar objectives. Particularly close cooperation was achieved with projects of the US Agency for International Development, which lay the emphasis on Bulgaria and such, in which the focus is on the region of Southeast Europe. 2 Energy Efficiency Demonstration Zone in the City of Gabrovo Table Of Contents Foreword 2 Basic Data of the Project 5 Brief project description 5 Basic financial data 6 Project implementation 6 Executing agencies 6 Project Co-ordinator 7 Project partners 7 Structure of the project 7 Part One: OBJECTIVES, RISKS AND BARRIERS 8 Project objectives 8 Socio-economic situation at project start 9 Energy efficiency policy in municipalities 9 Capacity for energy efficiency in municipalities 9 Barriers to procurement of financing for energy efficiency projects 9 State of the street lighting systems 9 State of the district heating system 9 Energy efficiency in buildings 10 Assumptions and risks related to the objectives of the project 11 Economic and political stability in the country 11 Procurement of financing for implementation of the demonstration projects 11 Enhancement of the financial decentralisation and strengthening of the financial autonomy of municipalities 11 Increase of energy prices to the level of production costs 11 Introduction of sustainable financing mechanisms at the local level for implementation 11 of energy efficiency projects Alignment of the operating conditions to the norm requirements and normalisation of the baselines 12 Major problems and barriers, which have emerged in the course of implementation 13 Delayed financial decentralisation 13 Changes in the status of the National Environmental Protection Fund 13 Delayed restructuring of ownership on district heating companies 13 Part Two: ACTIVITIES TO IMPLEMENT THE PROJECT OBJECTIVES 14 Strategic objective: Overcoming of the barriers to energy efficiency improvement and reduction of GHG emissions 14 Immediate Objective 1 : Creation of sustainable local policy for reduction of GHG emissions through energy efficiency 15 Upgrading of the regulatory framework for energy efficiency 15 Introduction of municipal energy planning 15 Energy information system 15 Model Municipal Energy Efficiency Programme 16 Municipal energy efficiency programmes 16 Overcoming of the barriers to project financing 17 Identification of the barriers and recommendations for their overcoming 17 Dissemination of knowledge and information on project financing 17 Cost recovery mechanisms 17 Guides and training materials related to financing 17 Technical assistance for procurement of financing 18 Energy Efficiency for Sustainable Development of Municipalities 3 Immediate Objective 2: Local human and institutional capacity building and strengthening for the needs of the energy policy 19 Development of the Municipal Energy Efficiency Network EcoEnergy 19 Municipal Energy Efficiency Network EcoEnergy 19 Municipal energy efficiency offices 19 Capacity building in Network member-municipalities 20 Internationally certified team of trainers 20 Trained municipal management officials and specialists 20 Training materials on municipal energy planning and management 20 Immediate Objective 3: Raising the awareness of decision-makers, experts and the general public in municipalities 22 General
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