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 membership 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 collaboration 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 international 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 projects are implemented and concrete steps are made for integration of the results from them into the local authorities' policy for sustainable development of the municipality and the district. Local human and institutional building 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-development-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 provided 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-ordination, 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 and specialised information about the Network member-municipalities 22 Modalities of dissemination of information 22 Public events for dissemination of information 22 Information designated to encourage partnerships 23 National and regional conferences, seminars and workshops 23 Partnership for energy efficiency 23

Immediate Objective 4: Demonstration of the opportunities for energy conservation and reduction of GHG emissions through municipal projects 25 Implementation of demonstrations in Gabrovo 24 Demonstrations of technical solutions 24 - Street lighting 24 - District heating 24 - Hospital building 25 - School building 26 - Residential building 26 - Industrial building 26 - Administrative building 27 Organisation and management of projects 27 Technical, economic and environmental benefits 27 Dissemination of the Gabrovo experience 28 Initiation of projects in other EcoEnergy member-municipalities 28 International recognition of the project 30

Part Three: FINANCING, INTERACTION AND LESSONS LEARNED 31 Financing and co-ordination 31 Catalyst effect 33 Established partnerships 34 Lessons learned from project implementation 35 Existence of a high energy efficiency potential 35 The use of alternative sources of financing is possible 35 It is possible to strike a balance among the interests of all stakeholders 35 Energy efficiency projects produce diverse benefits 36 Project design and monitoring are important elements of the process 36 The implementation of the measures can be conducted without disruption of the operation of the site 36 Local capacity building should be a permanent priority 36 Need of additional international support 37 Annexes 39 Annex 1: Project products 39 Annex 2: Products of parallel projects financed by other donors 42 Annex 3: Project events 44 Annex 4: Key authors team 47 4 Energy Efficiency Demonstration Zone in the City of Gabrovo Basic Data of the Project Brief project description Basic financial data Project implementation Structure of the project

Official project title: Energy Efficiency Strategy to Brief project description Mitigate GHG Emissions. The project is aimed at introduction and development in Bulgarian Energy Efficiency municipalities of policies and practices for energy efficiency Demonstration Zone in the improvement and reduction of GHG emissions. It is organised in two City of Gabrovo, Republic of components: Bulgaria (1) Local human and institutional capacity building on planning and UNDP Project No: BUL/96/G32 management of energy efficiency in municipalities; GEF Project No: 149 (2) Demonstrations to identify the actual energy efficiency potential of municipal sites. Country: Bulgaria Local human and institutional capacity building for energy efficiency Primary area of focus: Climate change improvement and reduction of GHG emissions in Bulgarian municipalities is the core of project activities. The objective of the demon- Operative programme 5: Energy conservation and strations is to support this process and contribute to the achievement efficiency of maximum results. Processing entry date: 8 October 1996 The focus of the project is on municipalities and their functions with respect to energy planning and management. Its objectives are Signing of the Project Document: 12 May 1998 being achieved through a variety of activities - specialised studies, dissemination of general and specific information about efficient use of energy resources, training of local decision-makers and experts Duration: 72 months on energy planning and management, building and strengthening of local institutions on energy efficiency and sustainable development, development and strengthening of the Municipal Energy Efficiency

CLOSE-UP

Neil Buhne Resident Representative of the United Nations Development Programme to Bulgaria

The demonstration zone in Gabrovo was the biggest project in tures, poor awareness among the municipal officials and the our portfolio, the biggest project dealing with the environment broad public, lack of skills. Above all, it highlighted the fact that and energy issues. For us it was unique also because of the fact before the project energy efficiency was not really viewed as that it was the first project successfully implemented by an NGO. something that is part of the national policy. What makes this project different from other UNDP projects in Although it started in Gabrovo, through the Municipal Energy Bulgaria is that it really pioneered new approaches to energy effi- Efficiency Network EcoEnergy the project has gained national cov- ciency in municipalities. Municipal energy efficiency was not erage. Energy efficiency at the municipal level is not longer just a something that was high on their agenda when this project start- municipal issue, but has become an issue of the national policy. ed in 1997. The project, however, brought about a real change in And there is now a whole range of national policy measures that the attitude to it in municipalities. Energy is already viewed as a are creating more favorable conditions for municipalities. finite resource, which has to be well managed by municipalities. Municipalities now have the power to make themselves energy effi- Through the project it was shown how an individual municipality cient and competitive to a level where they can attract industrial could brake through the many barriers to energy efficiency, such and foreign investors that truly make them European municipalities. as lack of financing, regulatory restrictions on capital expendi-

Energy Efficiency for Sustainable Development of Municipalities 5 Network EcoEnergy as a base for collaboration among Bulgarian Although concentrated in one demonstration zone, the project aims municipalities and a tool for broader trans-frontier co-operation, at assisting all Bulgarian municipalities in their efforts to improve identification and promotion of innovative for the Bulgarian practice energy efficiency and reduce GHG emissions. The achievement of schemes and mechanisms for financing of energy efficiency pro- this effect is greatly enhanced by the Municipal Energy Efficiency grammes and projects in municipalities, encouragement of and sup- Network EcoEnergy, whose activity is co-ordinated and adminis- port for public-private partnerships in the field of energy efficiency, tered by the Project Executing Agency - the Center for Energy creation of prerequisites for sustainable development of the energy Efficiency EnEffect. efficiency activities in Bulgarian municipalities and prevention of The rapid growth of the Network, which by the end of the project cov- adverse climate change on a global scale through actions at the ers nearly two thirds of the total number of the municipalities and the local level. population in the country, permitted the replication of the results The demonstrations are concentrated at typical municipal energy achieved in Gabrovo in other population centres throughout the coun- end-use sites - buildings (a hospital, a school, a residential building, try. With support from several donor programmes, the project has an administrative building and an industrial building), the street obtained international recognition and some of its key elements have lighting system and the district heating system. They have been been spread in neighbouring states. selected on the area of the Gabrovo Municipality, which is hosting the energy efficiency demonstration zone. Through skillful integration of policy decisions with practical actions, the results and lessons learned from the demonstrations in Gabrovo are used for formulation of a steady municipal policy for energy efficiency and sustainable development of the municipality.

Basic financial data

Table 1.

Title of the institution Proposed financing Actual financing USD USD

A. Primary Input Project Budget GEF through UNDP 2 575 000 2 575 000 B. Co-financing Bulgarian party (cash) Incl. NEPF1, Gabrovo Municipality, Committee of 2 256 000 847 000 Energy, Elektrorazpredelienie Gabrovo Branch, Toplofikatsiya Gabrovo SPSCo, private sector entities Bulgarian party (In-kind) Incl. Gabrovo Municipality, EcoEnergy member-munic- 1 705 000 1 710 000 ipalities, the Government and governmental institutions Bilateral donor USAID - for the hospital in Gabrovo 900 000 900 000 C. Parallel Financing Bilateral donors 2 USAID - other projects, UN ECE, Japan, the 861 000 Netherlands, Norway, miscellaneous donors3 Financing, total (A+B+C) 7 436 000 6 893 000

Project implementation forms the functions of Executing Agency, which is assigned the responsibility for the practical implementation of the project. The Executing agencies organisation of project implementation is based on the rules and The Representative Office of the United Nations Development procedures of UNDP for project implementation by NGOs. Programme (UNDP) in Sofia is the Executive Agency authorised Project Co-ordinator by the GEF, which performs governing and control on project implementation. The Center for Energy Efficiency EnEffect per- For the successful implementation of the project a Steering

1 National Environmental Protection Fund. 2 The table does not comprise the amounts spent directly by the leading foreign contractors. 3 The Regional Environmental Centre (REC), the World Resources Institute (WRI), the Organisation for Economic Co-operation and Development (OECD), the World Bank (WB), the European Commission (EC), Canada.

6 Energy Efficiency Demonstration Zone in the City of Gabrovo Committee has been set up, composed of representatives of the mentation. Successful co-operation has been established with the main financing institutions, governmental bodies, local authorities local utilities - Toplofikatsiya (District Heating) Gabrovo SPSCo and and international organisations. Electrorazpredelenie (Electricity Distribution) Gabrovo, which take part in the demonstration projects. The Ministry of Environment and Project partners Water supports the project and has provided partial financing for the The Municipality of Gabrovo is the main partner under the project demonstration projects through the National Environmental and its host. It ensures parallel financing for some of the activities Protection Fund. The management bodies of the demonstration and participates in the implementation. The municipalities members sites, the occupants of the residential buildings, the district heating of the Municipal Energy Efficiency Network EcoEnergy are also part- end-users and the general public of Gabrovo have also actively par- ners under the project and have their own contribution to its imple- ticipated in the implementation of project activities.

Structure of the project

ENERGY EFFICIENCY STRATEGY TO MITIGATE GHG EMISSIONS. Energy Efficiency Demonstration Zone in the City of Gabrovo, Republic of Bulgaria

CAPACITY BUILDING DEMONSTRATION PROJECTS

Hospital

School

Residential Building of Buildings Lighting System Efficiency Policy Municipal Energy Energy Efficiency Industrial Building Specialized Training Specialized on Energy Efficiency Overcoming of Financial Overcoming Energy Efficiency Retrofit Improvement of City Street Improvement of District Heating End-use Barriers to Energy Efficiency Energy Efficiency Renovation Municipal building

CLOSE-UP

Frederic Romig Secretariat of the UN Economic Commission for Europe

The demonstration zone is Gabrovo was nominated for a first time by of the Municipal Energy Efficiency Network EcoEnergy.The regional the Bulgarian delegation at the UNECE seminar on energy efficiency application of this concept lead to the development of the Regional held in Rome in October 1992. In 1998 the Board of the Global Network for Efficient Use of Energy and Water Resources (RENEUER) Environment Facility approved the project and described the Gabrovo in Southeast Europe and to the membership of EcoEnergy in the submission as a model project. European network Energie-Cites. In the framework of the Energy Efficiency 2000 Project of the UNECE and its successor Energy The Center for Energy Efficiency EnEffect and the demonstration zone Efficiency 21 the demonstration zone in Gabrovo has served as a at Gabrovo richly deserve the recognition and respect they have model of what can be achieved locally and replicated elsewhere. This earned in successfully applying the broad principles of the UN is a valuable foundation for new projects within Bulgaria and in Framework on Climate Change to a municipal level. More importantly, Southeast Europe. they have shown that this approach can be replicated within a country and among the countries of Southeast Europe. One of the most valuable achievements of this approach taken by EnEffect at the demonstration zone in Gabrovo has been the creation Energy Efficiency for Sustainable Development of Municipalities 7 Part One Objectives, risks and barriers This part provides a description of all activities performed for achievement of the preliminarily formulated project objectives and the obtained concrete results.

Project objectives Strategic objective Immediate objectives

Strategic objective: Overcoming of the barriers to energy efficiency and the related reduction of GHG emissions

Immediate objectives: Creation of sustainable local policy for reduction of GHG emissions through energy efficiency Local institutional and human capacity building and strengthening for the needs of the energy policy Awareness raising of decision-makers, specialists and the general public in municipalities Demonstration of the opportunities for energy saving and reduction of GHG emissions through municipal projects.

CLOSE-UP

Bogomil Belchev Mayor of Gabrovo

Since times unknown Gabrovians are famous for being people was no better - fully depreciated joinery, indoor lighting that did with a pragmatic bent of mind, seeking for savings wherever not permit evening classes. The situation in the hospital was possible. A common joke tells that they shorten the cats' tails to similar. prevent cooling of the rooms when they go out through the If one has to summarize the results from the projects implement- doors. Therefore, the selection of Gabrovo as a host of the ed as part of the energy efficiency demonstration zone, one Energy Efficiency Demonstration Zone was an extremely lucky word will suffice to characterize them: positive, both in terms of choice. hygienic improvements and in terms of social and economic Municipal energy planning is a very difficult task above all impact. These results provoked a very broad response among because of the lack of trained personnel. When we started to draft municipalities all over Bulgaria. This is evidenced by the numer- the first ever energy efficiency programme in Bulgaria, we ous meetings, which we have had in Gabrovo for demonstration engaged a very broad circle of experts. We succeeded in con- of what had been done and for rendering methodological assis- vincing the Municipal Council and it approved it at the first read- tance. ing. Currently, the results from this programme can be seen every- where on the area of the municipality. Prior to the implementation of the energy efficiency programme the street lighting in Gabrovo was in an extremely poor state of repair. It was on for not more that 2-3 hours in the 24-hour cycle and there were periods when it was fully disconnected. After the reconstruction of the lighting Gabrovo became one of the best-lit cities in the country. The situation in the school building

8 Energy Efficiency Demonstration Zone in the City of Gabrovo Socio-economic situation at project start Energy efficiency policy in municipalities Capacity for energy efficiency in municipalities

The implementation of the project started immediately after a grave lighting was either switched off or intentionally limited for long peri- political and financial crisis, which triggered a radical restructuring ods of time, for lack of funding. As a result from these factors, the of the political power in Bulgaria. With support from the international lighting levels on streets and other open public spaces in the financing institutions, a Currency Board was introduced in the coun- majority of population centres were far below the norm require- try, which within a short time achieved financial stabilisation through ments. Nevertheless, energy consumption by street lighting used severe domestic rules and restrictions. to account for more than 10% of the total electricity consumption in municipalities. The main reasons for that were the massive use of inefficient luminaries and high capacity bulbs, the absence of Energy efficiency policy in municipalities automatic control of street lighting systems and the shortcomings In their efforts to conduct a policy aimed at energy efficiency of the norm requirements for illumination of the open public spaces improvement, to share or acquire experience, the municipalities and streets. It was obvious that there was a significant potential for used to stumble upon different types of barriers - shortage of ade- energy efficiency improvement, however various barriers obstruct- quate experience and skills, regulatory or financial restrictions with ed its utilisation. The not fully clarified relationships between the respect to investments, absence of whatever mechanisms for quick owners of the street lighting systems (municipalities) and the care- and easy exchange of information. Energy efficiency structures and takers (the electricity distribution companies) gave rise to conflicts specific regulatory framework were non existent either. of interest, which hindered investments for energy efficiency improvement and caused accelerated deterioration of the facilities Capacity for energy efficiency in municipalities and equipment. There were no trained experts in the field of energy efficiency in State of the district heating system Bulgarian municipalities. This was one of the main reasons why the significant energy efficiency potential existing in the municipalities At the start of the project the activity in centralised district heating was seldom realised through well-prepared and properly imple- supply was concentrated in 22 commercial companies, mainly in the mented investment projects. The cases in which municipalities have district centre-cities. 21 of them were 100% state-owned. These managed by themselves to develop and implement comprehensive companies used to supply heat for space heating and domestic hot long-term energy efficiency programmes were still rarer, if any.There water to more than 570 000 dwellings occupied by more than were no accessible methodological guidelines and guides in 1 550 000 people or about 20% of the population in this country. The Bulgarian language and adequate to the circumstances prevailing public buildings connected to the district heating network featured a in the country on how to develop energy efficiency projects and pro- heated volume aligned to that of about 240 000 standard flats. With grammes. Municipalities could hardly, if ever, find qualified and the exception of the district heating company of Sofia, in which the accessible for their circumstances expert assistance with respect to municipality is the majority shareholder, all the rest were state- procurement of financing for their projects. owned. The district heating company in Gabrovo possesses a TPP for com- Barriers to procurement of financing for energy efficiency projects bined heat and power generation. The TPP features seven coal- and The most significant barrier to the implementation of energy effi- mazut-fired steam boilers and a boiler system for preparing of hot ciency investment projects in municipalities was the shortage of water for the water-based district heating system in the city.The gen- funding and the absence of skills on how to mobilise funding. The erated electricity is sold to the national grid. The heat transportation municipalities had difficulties in overcoming the regulatory restric- system was worn out and accounted for a large portion of the heat tions on investment of equity funds and the use of bank loans. losses of the company. Financing mechanisms and schemes, which had already been very Until 1998, a significant share of the district heating (DH) substa- popular or even routine in other countries, were poorly known. A tions in the country were not equipped with devices for commercial number of potential sources of financing did not enjoy broad popu- metering (heat meters) and pricing was based on the heated vol- larity. Municipal administrations suffered from shortage of skilled ume of the flats. This approach, besides being inaccurate, did not experts on financing. provide any incentives for energy conservation at the end-users. The subscribers did not possess any means for regulation of or State of the street lighting systems control on their consumption. Many of them resorted progressively Street lighting in almost all the Bulgarian municipalities was ineffi- to disconnecting some of the installed radiators, while others fully cient in terms of both quality performance and quantitative indica- resigned from the district heating service, which resulted in further tors. Because of the obsolete and heavily depreciated equipment deterioration of the efficiency of the system. There were no mecha- and ineffective and irregular maintenance, at the time of project nisms and tools for billing consumers according to their real indi- start not more than 30% of the total installed capacity in the street vidual consumption. All these conditions not only did not encourage lighting systems in Bulgarian cities were actually in operation. In more rational use of space heating, but rather preconditioned heat remote population centres (including in the city of Gabrovo) street waste.

Energy Efficiency for Sustainable Development of Municipalities 9 Objectives, risks and barriers

CLOSE-UP Energy efficiency in buildings A significant share of the building stock in Bulgaria is heavily depreciated and inefficient from the point of view of energy performance. Despite the positive changes in some building rules and standards, the cases of retrofit or reconstruction of buildings for improving their energy efficiency performance are still rare. Among the main reasons for that, on one hand, are the numerous barriers to energy effi- Seth Baruch ciency projects in the current practice, and on the other hand the poor knowledge on building owners and occupants about the exist- Alliance to Save Energy, USA ing opportunities for minimising their energy consumption without detriment to the operating characteristics of the buildings. Gabrovo We have been working with EnEffect for several years now and this is a typical medium-size Bulgarian city and the majority of the build- has been a really inspiring experience. I am deeply impressed by ings in it do not differ substantially from those in the rest of the cities the way, in which the energy efficiency market got agitated in in the country. Bulgaria. Presently, we are witnessing in Bulgaria of projects, whose implementation would have been impossible a few years ago and is still not possible in many of the countries in the region. Issue of municipal bonds for energy efficiency projects, third party financing by ESCOs - these are brand new mechanisms, which are getting developed in the country and that is the result, among others, of our co-operation with the respective governmental bodies and with EnEffect. Some of the most impressive results serve as samples for the region and I hope that the other countries will take a look at Bulgaria and learn from this experience in order to replicate it and accelerate the development of the energy efficiency market in the area. So, it was an extremely inspiring experience to work with EnEffect.

CLOSE-UP

Ira Birnbaum US Agency for International Development

The US Agency for International Development is pleased to want to make sure that the difficulty of the low-income support the Regional Network for Efficient Use of Energy and population to pay for energy is not used as a reason to slow Water Resources (RENEUER), which promotes energy efficiency down or stop the reforms. So, energy efficiency is the tool that in Southeast Europe. This ensues in part from our assistance to can be used for less money than other methods to help the the Stability Pact, which is intended to promote economic low-income households meet the rising energy prices. co-operation among the countries in the region. Energy efficiency is a very good tool to use for this process because it is a way, in which investments can repay themselves through energy savings. So, our emphasis in the RENUER process has been to raise awareness of the amount of savings from energy efficiency and to build capacity through training to help stimulate the investments and to develop good investment project proposals. Another important element that we are trying to bring to this is to use energy efficiency for lowering the energy costs of low-income households, which are the most vulnerable. Since the reforms themselves are important, we

10 Energy Efficiency Demonstration Zone in the City of Gabrovo Assumptions and risks related to the objectives of the project Political stability Procurement of financing Financial decentralisation Increase of energy prices Sustainable financing mechanisms Normalisation of the baselines Under these circumstances long-term forecasting was difficult and the management of the project had to assume higher risks with respect to the implementation of the formulated strategic and immediate objectives. Anyway, the generally speaking rapid effect of the introduction of the Currency Board in the country gave rise to more positive expectations and they respectively affected the assumptions and assess- ments of the risks with respect to the project. The following major assumptions were made, on which the forecasts about degree of esti- mated risks were based:

Economic and political stability in the country Assumption: low risk The radical political changes in the country have gained broad pub- this process and delayed it. Moreover, despite the political decla- lic support and this created prerequisites for forecasting of a long- rations in support of local self-government and financial decen- term political stability and economic growth. Generally speaking, tralisation, the governments were persistently curtailing the pre- these projections have been corroborated. The political changes requisites for autonomous financing of financing. Under these cir- after the year 2000 did not change the direction of the country's cumstance the Gabrovo Municipality, the same as all the rest of development and did not have an unfavorable impact on the project. the EcoEnergy member-municipalities, which dared to launch initiatives to improve energy efficiency in their sites, had to over- Procurement of financing for implementation of the come serious obstacles. In this sense, the preliminary defined risk with respect to the financial autonomy of municipalities turned out demonstration prpojects to be underestimated. The project was implemented rather under Assumption: medium high risk the conditions of centralised financing and that was one of the gravest barriers to be overcome. The envisaged grant financing from the National Environmental Protection Fund was provided in the form of 0-interest credit for the street lighting system and was entirely refused for the project in the dis- Increase of energy prices to the level of production trict heating system. The Fund did not provide financial support for the costs projects in the buildings either. No financial support has been received from the National Trust EcoFund either. Instead, part of a World Bank Assumption: medium high risk loan was re-directed to the project in the district heating system and that In compliance with the long-term energy strategy the Governments had a positive effect on the implementation of the demonstration. A has proceeded with increasing the energy prices as planned. This common direction of the efforts was ensured in 1998, when with funds development enhanced the interest of municipalities in improving under the PHARE Programme seven existing indirect DH substations energy efficiency and served as a favorable factor for achievement were replaced by new modern ones as part of the Regional Energy of the project objectives. Concept for Lovech District. The district heating company contributed with significant amount of equity funding for equipment of the radiators in the dwellings of its subscribers with heat allocators, which remained Introduction of sustainable financing mechanisms its property. Although the relatively high risk was corroborated in the at the local level for implementation of energy course of project implementation, it was overcome and the demonstrations were completed with success. efficiency projects Assumption: medium high risk Enhancement of the financial decentralisation Despite the anticipated difficulties, interesting financing schemes and strengthening of the financial autonomy of were implemented in the course of project implementation both in municipalities Gabrovo and in other municipalities of the Network. Specific attention was paid to Third Party Financing, which is very attractive for Assumption: low risk Bulgarian municipalities under the current conditions of grave short- The new legislative framework of local self-government and local age of free budgetary funds for implementation of significant initial administration, created in the beginning of the 1990s, is a good investments. It may be reckoned that in this respect the project has basis for financial autonomy of municipalities. Unfortunately, the been implemented with success despite the high risks and serious economic difficulties of the mid-1990s slowed down the pace of difficulties that had to be overcome in the course of implementation.

Energy Efficiency for Sustainable Development of Municipalities 11 Objectives, risks and barriers

Alignment of the operating conditions to the norm lighting levels in the classrooms, surgery theatres and streets, requirements and normalisation of the baselines have been gradually overcome. Despite the difficulties of the municipality to meet the high costs, space heating and lighting Assumption: medium high risk were aligned to the norms in force in the country. This has allowed the use of normalised baseline data in the calculations of the The grave deviations of the indoor temperatures from the norm results from the project. requirements for schools and hospitals and the below-standard

Table 2.

Assumptions Forecast risk Actual risk Comparison with Overcoming the assumption of the risk Economic and political stability in the country Low Low Successful

Procurement of financing for implementation of the Medium high High Successful demonstration projects Enhancement of the financial decentralisation and Low High Successful strengthening of the financial autonomy of municipalities Increase of energy prices to the level of Medium high Low Successful production costs Introduction of sustainable financing mechanisms High High Successful at the local level for implementation of energy efficiency projects Alignment of the operating conditions to the norm Medium Medium Successful requirements and normalisation of the baselines

CLOSE-UP

Nikola Kolev Mayor of Gorna Oryahovitsa, Chairman of EcoEnergy (2002-2003)

The Municipality of Gorna Oryahovitsa is one of the founders of EcoLinks Programme. The membership of the municipality in the Municipal Energy Efficiency Network EcoEnergy. Our EcoEnergy is a very beneficial and farsighted step. It gives us an participation in the Network activities provided us an opportunity opportunity, on the basis of the already accumulated experience to train some of our staff. Currently, the municipality has four local and collected information, to implement energy efficiency experts, who have undergone all the phases of the specialized projects, to compare our own achievements with those of other training. Their increased capacity was made use of in the municipalities, to identify rational solutions in already implemented development of a comprehensive Municipal Energy Efficiency projects elsewhere, to obtain information about different schemes Programme, which two years ago was approved by the Municipal for financing of the projects laid down in our Programme for the Council. For implementation of this Programme we use 2003-2007 term of office. I am particularly satisfied with the fact extra-budgetary means from the Housing Construction Fund and that we were able to create a Municipal Energy Efficiency our own resources allocated for capital investments. In Programme, to convince the members of the Municipal Council collaboration with "Electrorazpredelenie (Electricity Distribution)" and to demonstrate to the citizens of Gorna Oryahovitsa we managed to implement a large-scale project for street lighting, Municipality the benefits from energy efficiency, whose fruits we which has covered all the human settlements on the area of Gorna are gathering now. Oryahovitsa Municipality. We have installed more than 2,000 new energy saving lighting units and luminaries. The increased capacity of our experts has also contributed to the conducting of an energy audit of the municipal hospital, which was performed with financial support from USAID under the

12 Energy Efficiency Demonstration Zone in the City of Gabrovo Major problems and barriers, which have emerged in the course of implementation Delayed financial decentralisation Changes in the status of the National Environmental Protection Fund Delayed restructuring of ownership on district heating companies

Among the multiple difficulties, which accompanied the imple- municipality as borrower for the district heating project in Gabrovo mentation of the project, three turned out to be particularly impor- became devoid of any perspectives for success. tant. They called for specific attention and additional efforts on The second change affected the very status of the Fund. As a con- the part of the local authority and the contractors. sequence of it, the National Environmental Protection Fund ceased to be an extra-budgetary fund and was transformed into a legal Delayed financial decentralisation entity with the state budget. This also caused delay of implementation. By the end of the year 2000, EnEffect assisted Toplofikatsiya The expectations for an accelerated decentralisation of the Gabrovo in the development of a proposal for a 0-interest loan from financing of municipalities and strengthening of their financial the National Environmental Protection Fund to the amount of USD independence did not come true. During the entire period of proj- 489,000 as a first phase of the procedure of soliciting financing. ect implementation the heavily centralised financing of municipal- Application for further USD 326,000 was envisaged for the second ities acted as the major hindrance for the application of sustain- phase. The proposal was supported by the Regional Inspectorate able financing mechanisms in favour of municipal energy efficien- on Environment and Waters in the city of Veliko Tarnovo, the cy projects. This became also the main reason for the delay in the Municipality of Gabrovo, the State Energy and Energy Resources demonstration project for energy efficiency retrofit of the school Agency and EnEffect. Unfortunately, the application for a loan was building and the limited replication of such projects in other not honoured. Bulgarian municipalities. In order to alleviate the influence of this factor the campaign for elu- Delayed restructuring of ownership on district cidation of the benefits from municipal energy efficiency projects and identification of the possibilities for implementation of such proj- heating companies ects in the framework of the existing regulatory framework was The expectations that the ownership rights on district heating enhanced. Special emphasis was laid on the introduction to the companies would soon be transferred from the state onto munici- modern tools and schemes for financing of energy efficiency proj- pal or private enterprises did not come true. Even after project ects in municipalities, which might be of help to local authorities. In completion the ownership on the majority of the district heating the work among the politicians at the national level the emphasis companies continues to be vested with the state. The first signs of was on the need of upgrading of the regulatory framework on munic- dismantling of state ownership on district heating companies ipal budgets and clarification of the benefits from the proposed appeared as late as in March 2004. Nevertheless, the demonstra- amendments. tion project in the district heating project remained within the scope of the project and its implementation required closer co- Changes in the status of the National ordination with the Ministry of Energy and Energy Resources. The difficulties that followed caused 1-year delay of the completion of Environmental Protection Fund the demonstration, however this development permitted the During the implementation of the project the status and practice of implementation of a new study of the district heating system in the National Environmental Fund were changed twice. The first order to respond to the changed conditions in the field of heat change affected the conditions for granting of financing by the demand, the access to natural gas as alternative fuel and the con- Fund. Instead of allocating grants to municipalities (as originally sequences ensuing from the commitments to apply the EU envisaged) the Fund shifted to granting of loans under preferential Directives and hence to summarise the conclusions from the proj- conditions. This development caused delay of the implementation of ect with a view to increasing its effects. The main task of the study the project in the street lighting system, while the idea to have the was to propose a solution for an optimised technology scheme and duty cycle of the district heating system. Updated scenarios for development of the enterprise and the most promising versions were submitted to the Ministry of Energy and Energy Resources.

Energy Efficiency for Sustainable Development of Municipalities 13 Ðart Two Activities to Implement the Project Objectives This part provides a description of all activities performed for achievement of the preliminarily formulated project objectives and the obtained concrete results.

Strategic objective: Overcoming of the barriers to energy efficiency improvement and reduction of GHG emissions

In order to implement this strategic objective of the project, the existing variety of barriers to energy efficiency improvement in Bulgarian municipalities were identified and analysed. Some of them are typical for all territorial and management levels in the country, others are universal and may be encountered in almost all countries with economies in transition. Yet another part represents barriers, which are municipality-specific, often related to the concrete circumstances in the individual municipalities. The focus of the project was laid above all on those barriers to energy efficiency improvement, which were typical for all or at Municipal Energy Efficiency Network (MUNEE), USAID least a large majority of the municipalities in Bulgaria. A review is The results from studies of the barriers to energy efficiency in made also of barriers related to the national energy efficiency the country, performed in the framework of this project, were policy, which, however, have a strong impact on the local policies updated and summarised in the framework of the Municipal in municipalities. The work on identifying and analysing the barriers was supported by other international programmes as well, Network for Energy Efficiency (MUNEE) Project of the US the most significant among which are those sponsored by the Agency for International Development. Some of the barriers USAID and the Netherlands' government [22, 23, 24, 25 from ensue from the state of the economy and the national econom- Annex 1]. ic and energy policy and are the result of the general investment climate in this country. Others are the consequence of the state of the local self-government in general and of the range of con- tradictions in the regulatory framework, which obstruct local authorities' efforts to implement energy efficiency projects. Another quite substantial barrier is related to the unfavorable conditions for procurement of financing in the country. Besides identification of these problems in the framework of the USAID project, a number of specific proposals and recommendations CLOSE-UP for their overcoming (or dismantling) were made, which were integrated with the results from the GEF/UNDP project [28 from Annex 2].

SCORE (Support for Rational Energy Use), Novem, Ivan Tsenov the Netherlands Mayor of Vidin SCORE is a Dutch co-operation programme, oriented towards support for the social transition in the countries of Central and For the Municipality of Vidin it was a lucky chance that it joined Eastern Europe through projects and activities aimed at the Municipal Energy Efficiency Network. I am glad that we had improvement of the measures for protection of the environment the opportunity to obtain technical assistance, that our experts were trained in how to work out energy efficiency programmes and demand-side energy efficiency improvement. In the and, last but not least, that only a few months after our joining process of development of the SCORE National Project the Network we managed to implement a project for replace- Document for Bulgaria the barriers to and the necessary prior- ment of street lighting by a more efficient one. Nearly 3,500 ity activities for energy efficiency improvement in the country luminaries were replaced, which really changed the outlook of were identified. The major identified problem spheres were our city and, what is most important, the effort was welcome by reviewed together with the opportunities for overcoming of the the inhabitants with great satisfaction. They enjoyed the effect existing barriers at the national energy efficiency policy level, of the improved lighting, while the municipal administration institutional, financial and technical barriers and barriers relat- reported diminishing of the costs for it. We shall continue to ed to the local human potential and level of skills, as well as work in this direction, since energy conservation is extremely barriers in the field of public awareness. Detailed action pro- important for us. gramme was worked out for each of the identified problem

14 Energy Efficiency Demonstration Zone in the City of Gabrovo Immediate Objective 1: Creation of a sustainable local policy for reduction of GHG emissions through energy efficiency Upgrading of the regulatory framework for energy efficiency Introduction of municipal energy planning Overcoming of the barriers to project financing

Upgrading of the regulatory framework for energy The Key Numbers method efficiency The Key Numbers method was originally developed by the Norwegian company ENSI International. It is a tool for quick Imperfections of the regulatory framework for energy efficiency or its assessment of the energy efficiency of buildings, introduced in absence were found at all territorial and management levels. At proj- the practice of a number of countries from Central and Eastern ect start there was no law on energy and energy efficiency comply- Europe. It is based on indicators about the specific energy con- ing with today's requirements, while the environmental protection sumption, which depends on the functional designation of the legislation was not fully in pace, nor aligned to the European one. building, the climatic conditions, the thermal insulation and There were neither specific norm requirements for energy consump- other factors. tion, nor empirical indicators deducted from successful practical implementations. Energy prices were still below energy production The Key Numbers are reference values for the specific ener- costs and there were no incentives to foster efficient energy con- gy consumption, which take into account the entire complex sumption. The investment initiative of municipalities suffered from of factors relevant to different types of buildings under given legislative restrictions and the banking sector was not regulated conditions.The method is based on comparisons between the according to the modern principles. All in all, these circumstances calculated or measured values for energy consumption in the preconditioned the total absence of consecutive local (municipal) concrete building with the Key Numbers applicable to the policies for energy efficiency improvement and reduction of GHG respective type of building under given conditions. In this way emissions [7 from Annex 1]. it is possible to quickly assess the energy efficiency potential and the possibilities to achieve energy savings in a concrete The project was not assigned specific tasks with respect to the reg- building. The method may be applied both during the project ulatory framework on energy efficiency. In the course of its imple- design phase for new buildings and in the elaboration of mentation, however, a number of inconsistencies between the cur- plans for energy conservation in or retrofit of existing build- rently enforced regulatory frameworks and the practical actions for ings. energy efficiency improvement were identified. This situation provided grounds for the development of several concrete proposals For practical application of the method special software prod- for amendments to the existing regulatory acts, as well as for intro- ucts have been developed for quick calculation of the energy duction of norm requirements that had not existed in the practice till performance data and the financial results for new and exist- that time. ing buildings. Prior to the adaptation of the method for application in Bulgaria there were no Bulgarian analogues to it. For Comments and proposals with respect to the preliminary drafts of the purposes of capacity building for practical application of the Energy Efficiency Act were submitted on multiple occasions. this new method EnEffect conducted training courses for Concrete proposals for leaving with the municipalities the savings experts from the municipalities, trainers and students, who realised as a result of implemented energy efficiency projects and were awarded professional certificates.The activities for adap- for alleviation of the restrictions with respect to investments by tation of the method to the Bulgarian conditions were finan- municipalities were launched. The shortcomings of the regulatory cially and technically supported by the Norwegian framework with respect to street lighting systems were analysed Government [31 from Annex 2]. and specific proposals were submitted for legislative and management resolution of the problem. A formula for setting the price of electricity for street lighting was developed and a proposal for Introduction of municipal energy planning change in the manner of payment of electricity consumption by The main direction of the efforts for creation of a sustainable local street lighting systems was made. Some of the proposals have (municipal) policy for reduction of GHG emissions through energy been reflected in the provisions of the newly passed Energy Act, efficiency was the introduction of municipal energy planning. The while since October 2002 the State Energy Regulation Commission activities related to the implementation of this tasks were the core of has introduced a specific, lower price for energy consumed by the first project component. street lighting systems. Proposals for upgrading of the price-rate policy and practice of the district heating company in Gabrovo Energy information system were also worked out. Recommendable levels for energy con- An electronic information system on energy consumption in munici- sumption by different types of buildings have been elaborated and pal sites was developed. Special software for recording and moni- a specialised software for their application in practice was devel- toring of energy consumption was developed and made available to oped. Experts from the project executing team participated in the the EcoEnergy member-municipalities. On its basis an analytical transponing of the European standards for energy efficiency of database for the period since 1997 to date is maintained. The data- household appliances. base is used for development of municipal energy efficiency pro-

Energy Efficiency for Sustainable Development of Municipalities 15 Activities to Implement the Project Objectives

grammes and investment projects, as well as for training of munici- demonstration version of the system has been made available to pal experts. them for getting familiar with it and as a result similar information systems have been developed for use in these countries [18, 19 from The information system has bee presented at international forums, Annex 1]. where it has many a time been the subject of great interest. At the request of specialised organisations from Albania and Serbia a

Fig. 1. Information system on energy efficiency Production Selection of Institutions / Consumption Technical state Documentation Forecast for the human resources Information System Social acceptability Information System Financial conditions Operating conditions Regulatory provisions

Technical and economic data Other data

Evaluation of the energy efficiency potential Evaluation of opportunities

Evaluation of supply Evaluation of Integrated evaluation consumption Norms Finances Institutions Acceptability

Model Municipal Energy Efficiency Programme Municipal energy efficiency programmes On the basis of the analysis of the experience accumulated abroad The information system for monitoring of energy consumption, which and the conditions prevailing in Bulgaria, a methodological model for has been developed in the framework of the project, is already in development of an energy programme of a Bulgarian municipality has operation in 39 EcoEnergy member-municipalities. A software product been elaborated. In compliance with this model, two pilot pro- and training on how to work with the information system has been grammes were developed for the municipalities of Gabrovo and Stara available to another 64 municipalities. With the help of the information Zagora.The analysis of these pilot programmes has contributed to fur- system, a total of 37 energy efficiency programmes for EcoEnergy ther precision of the methodology for development of municipal pro- member-municipalities have been worked out in the framework of the grammes, which has later formed the basis of the training materials on capacity building activities and outside them, 7 of which have been municipal energy planning and management [100, 122 from Annex 1]. endorsed by the respective municipal councils.The implementation of another 18 programmes is underway, irrespective of the fact that some of them have not yet been formally endorsed by the municipal Fig. 2. Municipal energy efficiency programmes, developed by councils. Preparations for launching implementation are underway for EcoEnergy member-municipalities the rest of the programmes [90 - 126 from Annex 1].

Pilot programmes

Programmes in other municipalities

16 Energy Efficiency Demonstration Zone in the City of Gabrovo Overcoming of the barriers to project financing Bulgarian municipalities was performed. Recommendations addressed to the municipalities on how to take advantage of differ- Overcoming of the barriers to procurement of financing for munici- ent approaches to procurement of financing were elaborated. On the pal energy efficiency projects is a crucial condition for the imple- basis of these and in collaboration with representatives from munic- mentation of the municipal energy efficiency programmes. For this ipalities of EcoEnergy, proposals were formulated for amendments reason the efforts with respect to this task occupied a significant to the regulatory framework on municipal financing. In this way pre- place among the project activities. requisites for overcoming of the gravest barriers to municipal invest- Identification of the barriers and recommendations for their over- ments for energy efficiency improvement are created [22, 24, 29, 31, coming 32, 33 from Annex 1]. A review of the existing regulatory documents and practices, which Guides and training materials related to financing affect the business climate for energy efficiency in municipalities, A Guide with instructions on how to use local and international was elaborated. The main financial barriers were clarified and rec- sources of financing for municipal energy efficiency programmes ommendations were formulated on how to overcome them both with- and projects has been developed. It is accessible at the EcoEnergy in the existing regulator framework and by partial amendments to it. website. Special attention is paid to sources, for which energy effi- The papers related to the barriers to energy efficiency have been ciency improvement and reduction of GHG emissions rank as a top published in Bulgarian and English and circulated among the priority. Through the training courses and specialised seminars, this EcoEnergy member-municipalities, as well as among municipalities information is popularised among the EcoEnergy member-munici- from Southeast Europe with additional financial support from the palities. USAID through the Municipal Network for Energy Efficiency An Investment Guide, designated for municipal decision-makers (MUNEE) [22, 23, 24,25 from Annex 1]. and experts, was published. It provides useful hints on how to use Dissemination of knowledge and information on project financing different financing schemes and mechanisms, suitable for projects for energy efficiency improvement and reduction of GHG emissions. Five seminars and working meetings of representatives of municipali- Special focus is laid on the mechanisms "Third Party Financing" ties with banks and other financing institutions have been conducted. (Performance Contracting), "Joint Implementation", "Emissions Fourteen business meetings have been organised with energy serv- Trading", as well as schemes and mechanisms for micro-financing. ices companies. Ten specialised training courses on financing, seminars and workshops were also conducted. A number of events were An information pack for investors in the field of energy efficiency and organised and conducted with the support by and with the participa- the use of RES has been published. It offers a review of the poten- tion of other sponsors and partners in close co-ordination with this tial for investments in municipalities and the regulatory framework project. with respect to the investment process. It also contains typical case studies of successful practical implementations in the country [7, 24, Information about concrete opportunities for initiation of projects or 26, 27, 31, 32 from Annex 1]. other business initiatives for energy efficiency improvement and reduction of GHG emissions is made available to the EcoEnergy member-municipalities on a periodical basis.

Special events In the framework of the project and with the support of other donor programmes a number of public events and working meetings have been organised on the issues of financing of energy efficiency projects. At a series of business breakfasts with responsible officials of municipalities and the central state bodies specific issues of financing and proposals for amendments to the regulatory framework and the current practice were discussed (USAID-MEEN). With the support from the same project workshops were conducted with the participation of representatives of Network member-municipalities and leading commercial banks. In connection with the introduction of the DCA (Development Credit Authority) mechanism for guarantee on credits for municipal energy efficiency projects, provided by the US Government multiple working contacts and specialised seminars were held with commercial banks and experts from the municipalities (USAID). Training of experts from municipalities and the state Energy Efficiency Agency on Performance Contracting was conducted with participation of lecturers from the Czech Republic (UNECE and USAID) [Annex 3].

Cost recovery mechanisms An analysis and assessment of the mechanisms for recovery of costs and ensuring sustainability of the energy efficiency projects in

Energy Efficiency for Sustainable Development of Municipalities 17 Activities to Implement the Project Objectives

Funds to the amount of USD 489 000 for implementation of the energy efficiency measures. The funding could, however, not be granted to the municipality because of changes in the rules governing the operation of the Fund. In October 1998, the project "Energy Efficiency Strategy to Mitigate GHG Emissions. Energy Efficiency Demonstration Zone in the city of Gabrovo, Republic of Bulgaria", and specifically the Subproject in the district heating system, were presented at a seminar on Capacity Building for JI projects in Central and Eastern Europe. In compliance with the established procedure for applications for projects under the JI mechanism, a proposal was prepared and addressed to the Ministry of Environment and Waters and the Ministry of Commerce and Tourism of the Republic of Bulgaria. In April 1999, the Subproject on district heating was prepared in the form of Project Proposal for financing in the framework of the Programme for Economic Cooperation (PSO) between the Netherlands and Bulgaria for 1999. Both applications were not hon- Technical assistance for procurement of financing oured. Technical assistance was provided to Gabrovo municipality for the Technical assistance has been provided also to other municipalities procurement of financing from the National Environmental from EcoEnergy for the elaboration of 40 projects intended for solic- Protection Fund for the demonstration project in the street lighting iting bank financing. Among the success stories in this respect are system to the amount of BGN 542 000. The application was the approved applications of EcoEnergy member-municipalities for approved by the Fund and the funding was provided. Technical financial support in the framework of the EcoLinks and SAVE II assistance was provided also to Toplofikatsiya (District Heating) Programes [50 - 89 from Annex 1]. Gabrovo for the development of a proposal soliciting the allocation of a zero-interest loan from the National Environmental Protection

CLOSE-UP

Ivan Kolchakov Mayor of Pazardjik (1999-2003) Chairman of EcoEnergy (2003-2004)

Local policies are of exclusive importance for the development of partnerships. Seven years ago we started such a partnership for any municipality and in this sense the implementation of energy building a gas supply network in the municipality. During the efficiency policy is a matter of utmost significance. It leads to 1999-2003 term of office we became the leaders in Bulgaria in improved efficiency not only with respect to energy, but also with terms of the length of the network and the volume of gas sales. respect to finance and the environment. In the framework of this 90% of industry is connected to the gas distribution network. project we had our experts trained and in this way we could to a More than 80% of the public sector, health care and educational large extent materialize the total effect from the pursued munici- establishments and the building of the municipal administration pal policy in this direction. Thanks to this project we learned how are gas supplied, and presently intensive work is underway for to build partnerships and to procure financing. This is where the gas supply to the residential sector. All this comes to show that great benefit came from - the implementation of the project for such an international project can help multiply the benefits in energy efficiency reconstruction of street lighting, for which we many directions. I would like to encourage both our international have taken advantage of the Development Credit Authority (DCA) partners and the municipalities, which have embarked on this Programme of the US Government. We made our city brighter, path, to proceed further, since all this leads to financial stability better illuminated, and at the same time we saved budgetary and protection of the environment. It complies with the modern funds, since the new lighting is about six times more efficient. understanding of sustainable development and we are extremely Through the EcoEnergy Network we disseminated our experience grateful to all our partners, who contributed to the among the other municipalities in Bulgaria and now the elabora- implementation of this project. tion of such programmes and especially the implementation of street lighting projects is becoming a common practice. In the course of implementation of our programme we are ever more often orienting our efforts to building public-private

18 Energy Efficiency Demonstration Zone in the City of Gabrovo Immediate objective 2: Local human and institutional capacity building and strengthening for the needs of the energy policy Development of EcoEnergy Capacity building in the Network member- municipalities

Development of the Municipal Energy Efficiency operating in the rest of the Network member-municipalities and Network EcoEnergy associated regional associations of municipalities. They have been equipped with modern computer equipment and appropriate soft- The Municipal Energy Efficiency Network was founded one year before ware to be able to operate in network By the end of 2003, a total of the start of the present project with support from the US Agency for 39 municipal offices have been inaugurated and equipped.They are International Development. It is viewed as a basis for institutionalisation of the headquarters of specifically nominated energy efficiency offi- municipal activities related to energy efficiency improvement and a prin- cers. Such officers have been nominated also in the 15 new mem- cipal tool for dissemination of the project results. Under this project the ber-municipalities as a first step towards the setting up of permanent Network provided the medium, in which local capacity building for ener- municipal energy efficiency offices. gy planning and development of projects, establishment of partnerships and introduction of municipal energy efficiency policies were realised. EcoEnergy - member of international networks Municipal Energy Efficiency Network EcoEnergy Since its founding, EcoEnergy maintains permanent contacts The Municipal Energy Efficiency Network EcoEnergy has expanded with the European municipal energy efficiency network and developed in full compliance with its medium-term development EnergieCites and since 2003 it is its regular member. EcoEnergy programme. In 2002, a new Five-year Development Programme was is also a major participant in the activities of the Municipal approved, in which efficient use of water resources has been includ- Network for Energy Efficiency (MUNEE) of the countries with ed among the priority tasks of the Network. Annual Conferences of economies in transition from Central and Eastern Europe and EcoEnergy are conducted on a regular basis (1998, 2000, 2001, the former Soviet Union, which operates with support from the 2002, 2003 and 2004). Thematic seminars on energy efficiency US Agency for International Development. EcoEnergy is also the issues have been held in different municipalities and districts. In initiator and a leading participant of the Regional Network for 2004, two regional seminars for presentation of the major results Efficient Use of Energy and Water Resources in Southeast from this project and the programme for development of the network Europe (RENEUER). EcoEnergy is a desired partner for many after project termination were held. donor and other international organisations and companies, In the beginning of 2004, the membership of EcoEnergy comprised who are interested in activities and investments in Bulgarian 54 municipalities and 6 regional associations of municipalities. In municipalities [27, 28 from Annex 2]. this way a total of 158 municipalities participate in Networks activities. They account for 60% of the total number of municipalities in Bulgaria and represent more than 68% of the total population of this Capacity building in the Network member- country. As of 2003, the Network is legally registered as a formal municipalities association, a membership fee has been introduced and a new Statute has been approved. In this way, the beginning was laid for a Local capacity building in the field of energy efficiency is the core shift of the Network to self-subsistence [9 - 17 from Annex 1]. activity of this project. The entire executing team of the project and a broad range of municipal experts and decision-makers were Municipal energy efficiency offices involved in and contributed to the implementation of this task. A unit for support of the demonstration zone was set up in the Several parallel donor programmes contributed further to the expan- Municipality of Gabrovo. Municipal energy efficiency offices are sion of the subject and scope of the training programmes.

Fig. 3. Founding members of EcoEnergy, 1997 Fig. 4. Members of EcoEnergy by the early months of 2004

Energy Efficiency for Sustainable Development of Municipalities 19 Activities to Implement the Project Objectives

Internationally certified team of trainers ning and management a series of training programmes and training materials were developed in printed and electronic versions.The themes Twenty-four Bulgaria trainers on energy planning and management comprised "Municipal energy planning", "Energy auditing", "Business have been awarded international certificates, issued by the UNDP. plan of an energy efficiency project" and "The Key Numbers method". A They were selected among a significant number of carefully nomi- review of the foreign experience was prepared and a "Guide to Energy Planning for Decision-makers and Experts in Municipalities" was published. A demonstration electronic module for self-learning "Introduction National trainers team on energy planning and management to Municipal Energy Planning", on the basis of which in the future electronic teaching aids for distance learning will be elaborated, has been prepared for presentation at the EcoEnergy Annual Conference in 2004. The following training aids have also been developed for the purposes of training: a “Municipal Energy Planning. Guide for municipal decision-makers and experts”, “Information System on Energy Efficiency.Creating a Database by Means of the EcoEnergy Software”, “The Process of Energy Efficiency Improvement”, “Technical and Economic Evaluation of Energy Conservation Measures and Projects”, “Environmental Benefits”, “Guide to Municipal Planning”, “Presentation Techniques”. Materials on municipal energy planning nated architects, engineers and economists from the EcoEnergy have been translated in Serbian and Russian and have been used in member-municipalities, higher educational establishments from practical sessions held in Serbia, Moldova, Kirgizstan. Sofia and other cities in the country, and from EnEffect. The trainers underwent a prolonged training course, conducted by an interna- A guide to implementation of energy efficiency reconstruction of tional team of consultants from the UNDP.This team was composed street lighting systems was developed for the needs of municipal of experts from the company ENSI International (Norway and experts. The Guide presents in an easily understandable language France) and the Netherlands Agency on Energy and Environment the phases, through which the implementation of a project evolves - Novem (The Netherlands) [Annex 4]. from the selection of standards, through energy auditing and lighting engineering design, to the selection of appropriate and high-quality Trained municipal management officials and specialists luminaires, operation and maintenance of the street lighting systems. In the framework of 5 training courses of 6- to 8-month duration on Training in Southeast Europe the average, conducted in the period 1999 - 2003, 124 senior municipal officials and experts from 39 EcoEnergy member-munici- Part of the activities under the project "Municipal Network for Energy palities have received specialised training on municipal energy Efficiency (MUNEE)" of the US Agency for International planning and management. An average of 7 to 9 municipalities par- Development was designed to support the development and ticipated in each course, and in some courses municipal energy strengthening of the Regional Network for Efficient Use of Energy agencies was also invited to attend. On the basis of internationally and Water Resources in Southeast Europe (RENEUER). One of the recognised curriculum and interactive methods, which comprised forms of this support was training of municipal experts from Serbia lectures, exercises, seminars and homeworks, the course partici- and Moldova on municipal energy planning and how to prepare pants mastered knowledge and skills on how to develop municipal energy efficiency projects.The training materials were translated into energy programmes, how to identify investment projects, conduct Serbian and Russian. Representatives of 11 municipalities took part energy expertise and quick energy audits, develop business plans in the training course in Serbia and 7 Moldovian municipalities and and procure financing for project implementation. Real investment three representatives of Armenian municipalities participated in the projects and municipal energy efficiency programmes were elabo- course in Moldova. Each of the participating municipalities devel- rated in the course of the training and as an integral part of it. oped its own municipal energy efficiency programme on the basis All successful course graduates obtained international certificates of the methodology elaborated in the framework of this project and issued by the UNDP. By the end of the project all EcoEnergy mem- templates, for the purposes of which the programmes of several ber municipalities are proud of having trained experts on all themes Bulgarian municipalities from EcoEnergy were used. The pro- covered by the training courses. Presently, they act as devoted grammes were welcome with great interest and the proposed agents of EcoEnergy and leading experts on energy efficiency in methodology was highly appreciated by the Serbian and Moldovian their respective municipalities. 39 municipal energy efficiency offi- municipal decision-makers and experts, who attended the training cers have been trained on how to work with the information system courses. According to the available information, some of the devel- on energy efficiency. oped Serbian programmes have been approved by the respective municipal councils and are being successfully implemented.Course In the period 2003-2004, with support from the Government of graduates were awarded professional certificates. An eloquent tes- Norway and with the participation of the Norwegian consultancy timony of the results from the training is the fact that other munici- company ENSI International, training of trainers and experts from the palities from Serbia and Armenia have declared their desire to take municipalities was conducted on the application of the Key part in a course on municipal energy planning and management. Numbers method and the use of a specialised software in energy auditing of municipal buildings [Annexes 3]. The experience accumulated in the course of the first municipal energy programmes was presented at several international events Training materials and guides on municipal energy planning and in the framework of RENEUER and MUNEE, as well as at a session management of the Steering Committee of the "Energy Efficiency 21" Project of the For the purposes of the specialised training on municipal energy plan- UN Economic Commission for Europe. 20 Energy Efficiency Demonstration Zone in the City of Gabrovo CLOSE-UP

John Millhone USA, Consultant

I am enormously impressed by how much has been accomplished gy efficiency. I speak about the latest energy efficiency strategy, by the project. I was involved in the early stages and developing the recent legislation, and I think the value of what has been done the plans and, as you know, since then there has been a very diffi- in the past is that it established the foundation so that in order to cult environment in Bulgaria in order to make advances in the ener- implement these programmes throughout the country you will have gy efficiency area, and the programme has, despite these difficul- it happen much more rapidly and the benefits will be not only in ties, made significant improvements in energy efficiency in street energy efficiency, but low energy costs, improved environmental lighting, in hospitals, and other buildings, and has established the conditions, creation of new jobs and a significant improvement of basis for progress in the future as a result of what has been the lives of the people of Bulgaria. learned from these programmes. So, the project has made it possible for in the future to make use of It has been impressing to me to see that the accomplishments that the lessons learned to have a broad positive impact on the people have been made in Bulgaria in recognizing the importance of ener- of Bulgaria.

CLOSE-UP

Lachezar Rossenov Mayor of the City of Dobrich Municipality (1995-2003) Vice-Chairman of EcoEnergy (2003-2004)

The EcoEnergy Network was born from the natural challenge field, companies dealing in equipment supply and installation, and facing municipalities - the need to save money. The unbearable companies performing activities related to energy efficiency. It is expenditure levels forced mayors and municipal councils to seek time to decentralize the efforts and to revitalize the local market, to for ways and means to reduce their costs and the Network build local human capacity at the levels where in fact the concrete emerged as a natural solution. Its development was extremely problems are being solved. This, of course, means training people. successful and it managed to achieve something of primary So far EcoEnergy has been training municipal experts, but in my significance - it provided the tool helping to save money and opinion it should address its efforts also to the local businesses prepared the people in municipalities on how to use this tool. The and build their capacity for the tasks of the future. This means also Network has to a great extent performed a pioneer function, since new forms of delivering the training, because with the capacity of years before the Energy Efficiency Act was passed in Bulgaria the only EnEffect and its employees it will be difficult to cope with a debate on energy, on the ways for its conservation, had already task of such a large scale. Most probably, it will be necessary to taken place in the municipalities. The calculations the municipali- seek for innovative electronic means for distance learning and ties had started to work out and the plans that they had developed self-learning, to enrich the websites of the Network and EnEffect. were forerunners of what the state had recently approved as a In my capacity of Vice-Chairman of EcoEnergy I attended the 2003 mandatory norm. EcoEnergy and the Center for Energy Efficiency Summer International Seminar on Energy Efficiency in France. Two EnEffect prepared local authorities far before the state came to things impressed me particularly. The first one was that energy concrete decisions. For this reason municipalities are much ahead efficiency is the object of exclusively great attention. This means in this field, since the majority of them have already mastered how that we are on the right path and that what we are doing is to do much of what many state institutions and other entities have necessary and useful. The second thing which gave me great yet to learn. satisfaction of being a Bulgarian was the exceptionally high At present EcoEnergy is faced by two major challenges. One is to recognition of EcoEnergy as a phenomenon, which is an example reach out to all the 264 municipalities in Bulgaria and the other - to for the rest of the countries with economies in transition. Our orient our efforts towards the business community. What can most experience proved to be of interest to the EU member-states as effectively help municipalities is partnership with the business well. The manner in which EcoEnergy involves local authorities, circles. It is necessary to expand the market for energy services by professionals and the general public in the efforts for improvement involving companies which are professionally active in the energy of energy efficiency was appraised very highly.

Energy Efficiency for Sustainable Development of Municipalities 21 Immediate objective 3: Raising the awareness of decision- makers, experts and the general public in municipalities General and specialised information about the Network member-municipalities Information designated to encourage partnerships

General and specialised information about the objective of the project was to assist the business communica- Network member-municipalities tions between developers of energy efficiency projects in Southeast Europe and potential Western investors and to pro- The selection, processing and dissemination of information about mote the Regional Network for Efficient Use of Energy and Water the outputs and lessons learned from the individual activities Resources RENEUER (www.reneuer.com). realised in the framework of the project, as well as about successful policies and practices in Bulgaria and abroad, is an important com- At the beginning of 2001, as an outcome of an international ponent of the project, which is evolving parallel to the implementa- competition EnEffect was selected to design and service the tion efforts as from the very start. new website of the UNECE Programme "Energy Efficiency 21" (www.ee-21.net), aimed to replace www.ee2000.net, which had Modalities of dissemination of information been designed by the US company Camber Corp. EnEffect An Information Center on energy efficiency was set up at the head- succeeded within very short deadlines to design an entirely new quarters of EnEffect for the needs of EcoEnergy. A permanent ref- website, which was posted in Internet on 15 April 2001. For erence information (passports) of EcoEnergy member-municipali- almost three years now, EnEffect continues to maintain and ties is maintained. A quarterly EcoEnergy Magazine is being pub- update this website. lished. Since 2002, the magazine has a new enriched structure and new design layout. A total of 18 issues, devoted entirely on the In the framework of the Municipal Network for Energy Efficiency issues of energy efficiency in municipalities and mitigated climate (MUNEE) Project, financed by the IS Agency for International change have been published and circulated in the framework of Development through the Alliance to Save Energy (USA), in this project. Information about good practices in the field of energy 2001 EnEffect worked out and continues to maintain the website efficiency locally and abroad is disseminated on a periodical basis. www.munee.org . The main objective of this website is to popu- A website of EcoEnergy has been developed and is been regular- larise the energy efficiency activities and good practices in the ly maintained (www.ecoenergy-bg.net). Three exhibitions of energy CEE and CIS (Community of Independent States) countries [31, efficient products and services have been organised. Consultations 32, 45, 46 from Annex 1]. and technical assistance have been provided to municipalities directly and through the established electronic network. Currently, Public events for dissemination of information work is underway on the development of a specialised information A large number of public events have been launched in the website on energy efficiency under the name "Information Clearing EcoEnergy member-municipalities, at which information was dis- House". seminated about the results from the demonstrations in Gabrovo and other products and achievements of this project. Some of these International websites on energy efficiency events were organised in collaboration with and through financial At the end of 1999, under a contract with the US Department of contribution by other donor programmes. Energy for creation of an Internet-based tool for business communication, the "Win-Win Business" website was developed.The

22 Energy Efficiency Demonstration Zone in the City of Gabrovo Information designated to encourage partnerships Partnership for Energy Efficiency. Information Clearinghouse One of the key tasks under this project was establishment of partnerships for implementation of energy efficiency projects between Íèå ìîæåì Network member-municipalities and between municipalities and the äàÂè ïîìîãíåì private sector. Numerous public events organised in the framework Àêî ñå ðåãèñòðèðàòå â Èíôîðìàöèîííàòà of this project and specific modern Internet-based communication áîðñà, Âèå ùå ïîëó÷àâàòå íîâèíèòå ïî Ïðåäñòàâåíè ñà óñïåøíèòå ïðàêòèêè â îñúùåñòâÿâàíåòî íà ïðîåêòè çà èêîíîìèÿ íà åëåêòðîííà ïîùà; ùå ïîëçâàòå óñëóãè, means were used for implementation of this task. åíåðãèÿ â áúëãàðñêè îáùèíè, íåîáõîäèìèòå ôèíàíñîâè èçòî÷íèöè è ìåõàíèçìè è áîãàòà êîèòî ñà íåäîñòúïíè çà íåðåãèñòðèðàíèòå áèáëèîòåêà îò äîêóìåíòè è âèäåîìàòåðèàëè. ïîòðåáèòåëè; ùå ñòå ÷àñò îò îáùíîñòòà, National and regional conferences, seminars and workshops ðàáîòåùà çà ïîâèøàâàíå íà åíåðãèéíàòà åôåêòèâíîñò â ñòðàíàòà. Ïðåäñòàâåíèòå óñëóãè ñà ñâúðçàíè ñ èçâúðøâàíåòî íà åíåðãèéíè îáñëåäâàíèÿ,

ðàçðàáîòâàíå íà áèçíåñ ïëàíîâå, òåõíèêî-èêîíîìè÷åñêè àíàëèçè è îñèãóðÿâàíå íà A total of more than 1 200 people have taken part in the total of 79 Òîçè ñàéò e ñúçäàäåí ïî ïðîåêòà ôèíàíñèðàíå, îáó÷åíèå. events organised in the framework of the project - national and "Ñòðàòåãèÿ çà íàìàëÿâàíå íà åìèñèèòå íà ïàðíèêîâè ãàçîâå ÷ðåç åíåðãèéíà regional conferences, seminars, workshops, business meetings and åôåêòèâíîñò. Äåìîíñòðàöèîííà çîíà çà Ïðåäñòàâåíà å äåìîíñòðàöèîííàòà çîíà çà åíåðãèéíà åôåêòèâíîñò â Ãàáðîâî îñúùåñòâåíà ïî åíåðãèéíà åôåêòèâíîñò â Ãàáðîâî, training courses on different themes. Since its founding in 1997, to ïðîåêò ôèíàíñèðàí îò Ãëîáàëíèÿ åêîëîãè÷åí ôîíä è Ïðîãðàìàòà íà ÎÎÍ çà ðàçâèòèå. Ðåïóáëèêà Áúëãàðèÿ", ôèíàíñèðàí îò date, EcoEnergy has conducted six national conferences. In the Ãëîáàëíèÿ åêîëîãè÷åí ôîíä ÷ðåç period May 1998 - April 2004 a large number of joint seminars with Ïðîãðàìàòà íà ÎÎÍ çà ðàçâèòèå. Bulgarian and foreign organisations have been organised. Six seminars on the subject "Energy Efficiency in Municipalities", attended by a total of 87 participants, have been organised jointly with the This is the Home Page of the Partnership for Energy Efficiency Information regional associations of municipalities, which are associated mem- Clearinghouse website. It contains information about the main sections of the site, the bers of EcoEnergy. Seminars on the same subject have been orga- benefits from registration and a short note about the project Energy Efficiency Strategy nised in a joint effort with the Ecoglasnost National Movement and to Mitigate GHG Emissions. Demonstration Zone in the City of Gabrovo, Republic of the Energy Efficiency Agency for the municipalities of Pernik and Bulgaria, funded by the Global Environmental Facility through the UNDP, that support- Montana. Nine joint seminars with organisations from abroad were ed its development. So far the site is developed in Bulgarian only and is addressed to also held. A total of 372 people took part in their proceedings. Bulgarian municipalities mainly.

At the beginning of 2004, two regional seminars were held on the This is one of the three main sections of the site, namely the Demonstration Zone. The theme "Energy Efficiency for Municipalities". Ten workshops were page displays the structure of the project Energy Efficiency Strategy to Mitigate GHG also conducted on a variety of subjects, such as: "Development and Emissions. Demonstration Zone in the City of Gabrovo, Republic of Bulgaria. financing of energy efficiency projects", "Opportunities for collaboration to mutual benefit between Bulgarian municipalities and the private sector in the field of renewal of the municipal infrastructure procedure and eligibility of projects for allocation of funding were for more efficient use of energy and water resources", "Ownership discussed. In November 2002, another business meeting was held rights and municipal sites energy efficiency", "Energy efficiency in with manufacturers and suppliers of equipment and services for Bulgarian hospitals in the light of the health care reform", workshop energy efficiency. [Annex 3] of the issues of energy efficiency in buildings in Gabrovo. Partnership for energy efficiency Several workshops were held to acquaint the experts from the municipalities with the project of the US Agency for International Significant amount of efforts was oriented towards creation of condi- Development "Municipal Energy Efficiency Initiative. Scheme for tions for establishment of different partnerships between the Network assistance guarantee on credits lent by Bulgarian banks for imple- member-municipalities. Accessible modalities for making contacts as mentation of energy efficiency projects (DCA)". At the business well as all public events organised in the framework of the Network meeting held in February 2002 with representatives of Bulgarian were broadly used to this end. In 2003, the design of a specialised banks, 11 EcoEnergy member-municipalities presented their energy website "Information Clearing House - Partnership for Energy efficiency projects.The requirements of the banks with respect to the Efficiency" was launched, whose demo-version will be available for

The Steering Committee of the UNECE Project Energy Efficiency 21, Geneva

Energy Efficiency for Sustainable Development of Municipalities 23 Activities to Implement the Project Objectives

visiting and testing by the end of the project. It will disseminate "Energy Efficiency 21" Project is serviced (www.ee-21.net). All the detailed information in Bulgarian about the results from this project, three international websites are maintained by the Center for Energy selected information about good practices in Bulgaria and abroad, Efficiency EnEffect, which is acting as Executive Agency of the as well as a range of specialised services, consultations and training. project under review, and aim at contributing to the establishment and development of effective partnerships for implementation of For encouragement of the different forms of partnerships among the energy efficiency programmes and projects. member-municipalities and between municipalities and the private sector, several specialised websites have been designed and are Dutch support for a public-private partnership being maintained and updated on a regular basis.With support from the UNECE and the USAID since the year 2000 the "Win-Win Promotion of partnerships in the field of energy efficiency was Business" website has been maintained (www.reneuer.com) for the supported by the Executive Agency Senter with the Netherlands needs of the Regional Network for Efficient Use of Energy and Water Ministry of Economic Affairs - Senter Internationaal in the frame- Resources (RENEUER). Also since the year 2000, a website of the work of the PSO Programme. The thematic scope of the energy Municipal Network for Energy Efficiency of the countries with efficiency projects in municipalities was expanded by imple- economies in transition from Central and Eastern Europe and the for- mentation of high-tech projects for introduction of modules for mer Soviet Union (MUNEE) (www.munee.org) is being maintained combined heat and power generation and for utilisation of waste with support from the USAID. Since 2001 a website of the UNECE wood for energy generation.

A joint Bulgarian-Dutch company KARERA for manufacture of Co-ordination meeting of participants in the Regional Network for high-tech automated water-heating boilers, fired by waste wood Efficient Use of Energy and Water Resources (RENEUER), Sofia and intended for producing heat for space heating of public buildings and residential apartment blocks, was founded in Haskovo. The first pilot boiler was installed in 2003 in the Ivan Skenderov Municipal Hospital in the city of Gotze Delchev. The automated boiler in Gotze Delchev uses as fuel waste wood from the local wood-processing enterprises. It provides heating to the central block of the hospital. The low cost of the energy produced from biomass permits realisation of considerable savings on energy costs.

In 2002, the first private district heating plant with a co-generation module in Bulgaria was commissioned into regular operation in the city of Stamboliyski. The site is property of the company TEGE-21 Ltd., specifically founded for that purpose with the municipality and private companies as shareholders. The project was realised through a bank loan, in connection with the application for which EnEffect worked out part of the technical and economic calculations and the business plan [15, 26, 27, 60, 61 from Annex 2].

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Sead Vilogorac UN Economic Commission for Europe RENEUER Network for Southeast Europe has been established At the end of 2003 RENEUER is facing a new challenge that within the framework of the UNECE Energy Efficiency 21 Project. essentially will have to deal with development of investment The initial intention was to promote co-operation in the energy projects on a larger, regional scale. The Network also faces the efficiency in the region and to build high quality network that challenge to enlarge and to enhance the quality of its efficiency. would be able to address relevant energy efficiency issues in The role that EnEffect has played in the creation and the the region and co-operate closely with the countries from the operation of the RENEUER network was very important and in rest of the UNECE region. After several years of work we could this respect we would like to thank the organization and say with certainty that RENEUER had met all its goals and devel- particularly Zdravko Genchev, who provided great value added oped itself into a first-class facility for identifying energy efficien- to this part of the Energy Efficiency 21 Project of UNECE. cy projects.

24 Energy Efficiency Demonstration Zone in the City of Gabrovo Immediate objective 4: Demonstration of the opportunities for energy conservation and reduction of GHG emissions through municipal projects Implementation of demonstrations in Gabrovo Dissemination of the Gabrovo experience

Implementation of demonstrations in Gabrovo District heating The demonstrations in Gabrovo were concentrated in typical buildings, which permitted their broad replication in other Bulgarian municipalities and in municipalities of other countries with economies in transition. In technical terms the predominant part of the projects does not represent any serious challenge with respect to their implementation. As a whole, however, the process of preparing for and implementation of the projects, as well as the technical, economic and environmental results to be achieved were the object of specific attention.

Demonstrations of technical solutions A preliminary study of the district heating supply and heat consump- Street lighting tion in Gabrovo was conducted. The investment programme developed on the basis of the results from the study comprised three packages of measures, each of which could be implemented separately, although their implementation as a full set would significantly increase the effect of their application. These packages were as follows: - Investment package "Buildings"; - Investment package "Substations"; - Investment package "Heat transportation network". Technical design projects for implementation of a set of measures for improvement of the energy efficiency of the individual parts of the Lighting engineering project design for energy efficiency recon- system were elaborated. Heat meters for the total of 204 substations struction of the street lighting system in the city of Gabrovo was and 3 terminals for distance reading of heat consumption were deliv- elaborated, including a business plan for its phased implementa- ered as a parallel financing under a World Bank loan. In this way part tion. The energy efficiency measures were selected on the basis of of the planned governmental contribution to project financing was the comparative analysis between the baseline scenario and the realised. Through a joint action of EnEffect, the local UNDP office energy efficiency scenario and the respective forecast savings and and Toplofikatsiya (Distict Heating) Gabrovo more than 20 000 heat investment costs were calculated.Two main groups of measures for allocators were delivered and installed prior to the 1999-2000 heat- energy efficiency improvement were implemented: (a) replacement ing season and heat accounting was introduced for all DH sub- of the existing luminaires by more energy efficient ones; and (b) scribers in the city. For a first time in this country this service was optimisation of the operation cycle through introduction of cen- introduced on such an impressive scale. As a result of this effort tralised system control and night and semi-night operation cycles. some of the subscribers, who had resigned from the services of the The suppliers of the luminaires and the system for radio-control company, restored their subscription to Toplofikatsiya-Gabrovo and were selected through public tenders. The Municipality of Gabrovo the company was able to fulfill one of the tasks on its plan for finan- and the regional power distribution company contributed actively to cial rehabilitation. The automation of 12 indirect substations was project implementation. The achieved savings are considerable completed and 4 gland compensators have been replaced by and the additional side effects impart strong social significance to expansion joints. Nine direct substations were replaced by indirect the project. ones with automatic controls. An incentive programme was realised with respect to the installation of thermostatic radiator valves and an A guide on how to implement projects for energy efficiency recon- information campaign on the benefits from individual regulation and struction of street lighting systems, designated for use by municipal control of heat consumption was conducted, including among the experts, was developed and published. The guide presents in an low-income subscribers. easily understandable language the different phases of project implementation - from the selection of norms, through energy audit- In 2003, a new study of the district heating system in the city was ing and lighting engineering design to the selection of appropriate performed, which came forward with variant solutions about optimi- high-quality luminaires and the operation and maintenance of street sation of the technological scheme and the duty cycle of operation. lighting systems [35, 36 from Annex 1]. Two versions for successful development were submitted to the attention of the Ministry of Energy and Energy Resources [38, 39 and 40 from Annex 1].

Energy Efficiency for Sustainable Development of Municipalities 25 Activities to Implement the Project Objectives

Hospital building - replacement of the lighting fixtures in the classrooms by new energy efficient luminaries. As a result from the application of the measures, the energy consumption of the building has been significantly reduced. According to measurement data and interviews with the teaching staff and the pupils the general comfort level and work conditions in the building have improved significantly after the project implementation [42 from Annex 1].

Residential building

Through parallel financing from the US Agency for International Development a detailed energy audit was conducted in the General District Hospital in the city of Gabrovo. The design project elaborated on the basis from the results of demonstrated the energy conservation potential of this type of buildings through application of the following package of measures: - organisational and behavioural measures, which did not require any costs or were related to limited amount of costs (changes in the manner of operation of the equipment, installation of a 3-rate power meter); Retrofit of an 8-storey large-panel apartment block, consisting of 108 flats and 3 substations, was implemented. The following energy effi- - easy-to-implement technical measures: repair and weather-strip- ciency measures were applied: ping of windows, current repair and replacement of single units of equipment and aggregates (improvement in the steam generation - weather-stripping of windows and replacement of entrance doors; yard and the combustion processes); and - rehabilitation and automation of substations; - high-tech measures, implemented for a first time in Eastern Europe - fitting of thermostatic radiator valves and reflector screens behind (installation of a new air conditioning system in the surgery ward) for the radiators; ensuring adequate air quality and indoor micro-climate through recuperation of the exhaust heat at more the 80% coefficient of effi- - fitting of water-saving shower faucets; ciency). - fitting of new energy efficient luminaires. The project demonstrated that through packaging of measures of Monitoring of the site started as early as during the project imple- different technical and economic characteristics a rational balance mentation and continued after its completion. The results were close might be stricken between benefits and cost, while at the same time to the forecast values and were corroborated by the occupants, who certain problems requiring urgent action might be successfully shared in the interviews their satisfaction with the improved comfort resolved, such as for instance the indoor micro-climate [41 from in the flats [43 from Annex 1]. Annex 1].

School building Industrial building

Retrofit of the building of Otetz Paissiy School, built in 1983, was effect- An energy efficiency retrofit was implemented in the selected indus- ed. The following energy efficiency measures were implemented: trial building, that of the Mehatronika Company. The retrofit was - repair and weather-stripping of windows and replacement of realised with the active participation of the owners of the company. entrance doors; The incorporation of this site in the scope of the zone aimed at inves- tigating the opportunities for establishment of partnership between - reconstruction and automation of the substations; the municipality and the private sector for the purposes of improving - installation of reflector screens behind some of the radiators and fit- the energy efficiency of local industries. The following energy effi- ting of water-saving shower faucets; ciency measures were implemented:

26 Energy Efficiency Demonstration Zone in the City of Gabrovo - measures on the building envelope: replacement of doors and win- funds invested in it might successfully leverage additional private dows, fitting of additional thermal insulation on the roof slab; investments for energy efficiency improvement and bring about additional public benefits through the general economic strengthen- - measures on the in-house space heating system: zoning regulation ing of the enterprise, which provides jobs for the local population of heat supply to the building, rehabilitation and automation of the and contributes to the local budget by increasing the revenue from boiler and the substation, fitting of reflector screens behind the radi- taxation. ators, compensation of the reactive capacities and regulation of the capacity factor cos n; All demonstration projects were preceded by energy audits and technical design. It has been found out that performing a specific - measures on the lighting system: replacements of lamps and lumi- lighting engineering design prior to launching the implementation of naires. any project for energy efficiency reconstruction of street lighting is As a result from the implemented improvements, the energy con- indispensable.The procedures related to the preparation of different sumption was reduced, and the work conditions in the offices and types of projects, including the selection of contractors and control workshops at the enterprise were significantly improved [45 from of the quality of workmanship were tested in real life. A series of ten- Annex 1]. ders was conducted for supply of materials, products and technical equipment in compliance with the technical design projects for reconstruction of the selected sites. The reconstructed sites are the Administrative building object of strict monitoring and the real results from the implementation of the energy efficiency measures are duly recorded and analysed. Schemes for promotion of energy conservation through incentives have also been tested. Awareness raising campaigns have been conducted among the occupants of the residential building and the pupils and teaching staff of the school. The operating personnel of the school, responsible for operation and maintenance of the equipment and staff of Toplofikatsiya Gabrovo SPSCo were trained on how to maintain the newly installed equipment. A number of meetings, briefings and interviews were conducted for the occupants of the apartment block to elucidate the objectives of the project and gain their conscientious support for it, as well as to instruct them on how In addition to the preliminary planned demonstrations, a project for the new equipment works. Specially developed brochures and writ- partial energy efficiency retrofit of the administrative building of the ten instructions were also circulated. Through the implementation of Gabrovo Municipality was implemented as well. The following the project in its own building, the staff from the local administration improvements were implemented: acquired knowledge and skills on how to develop and implement a real energy efficiency project. The responsible personnel were - measures on the building envelope: overhaul and weather-strip- specifically trained on how to operate and maintain the new equip- ping of windows and replacement of the wooden framing by plastic ment. framing with glass packet; Besides the direct energy savings, the reconstruction efforts have - measures on the in-house space heating system: shifting of the helped achieve additional benefits, such as reduction of the emis- boiler house to the main building of the municipality, including instal- sions from the boiler, upgrading of the temperature control in the lation a new automated water-heating boiler; replacement of the in- hospital buildings, improvement of the micro-climate in the surgery house space heating system; fitting of thermostatic radiator valves ward and training of several local companies involved in the imple- and reflector screens behind the radiators, mentation of the project. Building on the results achieved from the demonstration projects, recommendations were formulated for - measures on the lighting system: fitting of new energy efficient amendments to the regulatory framework on street lighting systems luminaires in the most frequently used lounges. and proposals for amendments in other regulatory acts. As a result of the improvements the heating supply to the unheated zones was restored and the comfort level in the building was nor- Technical, economic and environmental benefits malised [46 from Annex 1]. Business plans and financing plans have been worked out for all demonstration projects. The real technical and economic results Organisation and management of projects of the projects were established thanks to the conducted long- Through the demonstration projects in Gabrovo the entire process of term monitoring of the reconstructed sites. Significant diminishing study, design, implementation and monitoring of energy efficiency of energy consumption and energy costs and reduction of GHG projects could be tracked. The major barriers and difficulties facing emissions in compliance with the forecast levels have been the implementation of such projects in Bulgarian municipalities were reported. identified and public-private partnerships were built for their overcoming in the framework of the specific projects. Models for interaction among the different actors in the implementation process were created. It was in Gabrovo that for a first time an agreement for sharing the savings between the hospital and the municipality was signed. The project at Mehatronika demonstrated that the public

Energy Efficiency for Sustainable Development of Municipalities 27 Activities to Implement the Project Objectives

Table 3. Technical and economic indicators of the demonstration projects in street lighting and district heating [35 and 38 from Annex 1] Results Unit Subproject Toplofikatsiya (Distr. heating) Gabrovo* Street lighting Cost savings USD/year 370 543 309 528 Energy savings: Electricity MWh/year 9457 5729 Heat MWh/year 388.8** Payback period years 1.2 1.7 Investments, total USD 431.9*** 536 694 Host party financing USD 229.8 111 227

Reduced/avoided emissions, CO2 equivalent t/year 3719 10 556

Price per 1 t ÑÎ2 equivalent reduced/avoided emissions USD/t CO2 equivalent 7.7 8.9

* results by 31 December 2002, compared to 1996 as baseline; ** the electricity savings have been achieved only in 2002; *** the investments have been accounted till September 2003, while the technical and economic results of the company refer to the period by 31 December 2002.

Table 4. Technical and economic indicators of the demonstration projects in buildings in the city of Gabrovo [41,42,43,45,46 from Annex 1]

Final results Unit Hospital School Residential Industrial Administrative build- Total building building ing of the municipality Net annual cost savings USD 46 690 22 261 5595 6903 16 650 98 099 Annual heat savings MWh/year 2310 557 245 133 318 3563 Annual electricity savings MWh/year 38,6 21 15 10 85 Economic life-cycle of the project years 5 10 10 10 10 10 Payback period years 2.2 2.5 3.4 1.6 2.5 2.3 Investments total for energy efficiency USD 103 060 56 003 18 960 11 099 41 357 230 479 Co-financing by the municipality / others USD 4000 12 705 590 4900 29 236 51 431 Internal Rate of Return % 35 43 24 61 39

Annual savings from reduced CO2 emissions t/year 717.8 388.9 177.7 62.6 98.4 1445.4

Dissemination of the Gabrovo experience fit of the buildings of hospital, schools, kindergartens, etc.The implementation of some of the thus worked out projects is already under- Dissemination of the experience and lessons learned from the way, others are still in the process of search for funding. demonstrations in Gabrovo was a primary task of this project. All available means in the framework of the project, and above all the None new energy efficiency projects in municipal sites were initia- structures of the Municipal Energy Efficiency Network EcoEnergy ted in the framework of the project and are currently being imple- were mobilised for the implementation of this task. Since the signifi- mented (or have been completed) outside Gabrovo. Another 37 cance of the project goes beyond the boundaries of the country, the projects have been worked out with equity resources or with support dissemination of the results was extended along the international by donors in different municipalities. Twenty EcoEnergy member- networks. municipalities have undertaken reconstruction of their street lighting systems, building on and learning from the experience of Gabrovo Initiation of projects in other EcoEnergy member-municipalities and with direct support from this project. At the initiative of munici- The sites in the demonstration one in the city of Gabrovo are typical palities, with or without support from donors, further projects for representatives for their respective groups. Therefore, the conclu- reconstruction have been developed. With support from the UNECE sions from the projects in Gabfrovo were broadly disseminated and the USAID, three new energy efficiency demonstrations have among the EcoEnergy municipalities. As part of the training process, been established - in the cities of Blagoevgrad, Bourgas and Pernik. 40 concrete investment projects with business plans were worked A Guide for Implementation of Projects for Energy Efficiency in Street out for each of the municipalities participating in the courses. These Lighting, designated for municipal decision-makers and experts, are real proposals for reconstruction of street lighting systems, retro- has been published. [36 from Annex 1].

28 Energy Efficiency Demonstration Zone in the City of Gabrovo Fig. 5. Energy efficiency projects initiated in EcoEnergy member-municipalities

Hospitals

Schools and combined child-care establishments

Groups of schools and child-care establishments

Projects in residential, industrial and administrative buildings

Projects in district heating, the use of RES and gasification

Projects in street lighting systems

Demonstration zones

Table 5. Technical and economic data about some completed projects in EcoEnergy member-municipalities

Project Energy savings Investments Cost savings Payback period (MWh/year) (USD) (USD/year) (years) Projects in 4 schools and 3 kindergartens 1722 138 710 65 806 2.0 in the city of Pernik Project in Lyuben Karavelov 4th Primary 154 33 877 13 226 2.6 School, city of Pazardjik Fuel shift to natural gas and application of 18 546 1 140 808 342 261 3.3 energy efficiency measures in 40 municipal sites in the city of Dobrich

Table 6. Technical and economic data about implemented projects in street lighting systems in EcoEnergy member-municipalities

Varna Dobrich Pazardjik Svishtov Kardjali Veliko Tarnovo Bourgas Blagoevgrad Annual MWh 10 035 1277 4410 498 2 212 774 1300 3444 savings BGL thousand 1063 172 547 62 250 294 223 311

ÑÎ2 equivalent 16 860 2353 7409 918 3142 1761 2021 4107 Investments BGL thousand 3091 260 806 200 640 950 640 766 Payback period years 2.9 1.5 1.5 3.2 2.7 3.2 2.8 2.5

Energy Efficiency for Sustainable Development of Municipalities 29 Activities to Implement the Project Objectives

International recognition of the project EcoEnergy, which is an active participant in the activities of the regional network. EcoEnergy maintains active international contacts. Building on the experience of the Bulgarian Network, a Municipal Network for At the request of Serbia and Moldova, training of municipal experts Energy Efficiency (MUNEE), in which participate almost all countries on the model and programme uses by EcoEnergy was conducted in from Central and Eastern Europe and the former Soviet Union, has the two countries. The training was performed by teams of trainers been created with financial support by the US Agency for built and certified in the framework of this project. The results of this International Development. A Regional Network for Efficient Use of Subproject have been reported at international meetings and con- Energy and Water Resources (RENUER) is operating in ference, where they inspire considerable interest [31, 30, 47, 48 and Southeastern Europe. It draws above all on the experience of 49 from Annex 2].

CLOSE-UP

Ivo Andonov Mayor of Silistra

The Municipality of Silistra is working on energy efficiency improvement since 2001. In order to be able to plan correctly the costs for repair activities we have conducted a detailed energy audit of all municipal buildings. As Phase One of the programme we launched a project for renewal of the street lighting in the municipality and measures for repair of the in-house energy systems in the House for the Aged, the building of the municipal administration and a school building. The effect was overwhelm- ing. Heat consumption in the buildings was reduced by about 30% and the city's appearance by night has radically changed. The public lighting improvements were welcomed enthusiastically by the inhabitants. Now we are faced with the challenge to work out a comprehensive programme for our future work. We hope to be able during the new term of office (2003-2007) to rehabilitate with investment credits all municipal buildings, starting with the schools and the kindergartens.

CLOSE-UP

Honorio Pitaru Association for Energy Policy, Romania

RENEUER is a very good initiative, since its primary objective is because our efforts and our ideas can assist decision-makers in to expand the co-operation among the countries of Southeast approving policies and strategies. Energy efficiency means not Europe, which face similar problems with respect to energy effi- only comfort, it helps reduce poverty. All countries in the region ciency and the rational use of water. RENEUER is a network are petrol importers, which leads to increase of their foreign debt which involves both NGOs and governmental bodies. We, in our and aggravation of poverty. That is why we are interested in capacity of Romanian Association for Energy Policy, have set up making our contribution and sharing our expertise within a network of more than 73 experts, operating in 51 of a total of RENEUER. 80 municipalities in Romania. It is well to work in an international network, it is well to have exchange of views among experts,

30 Energy Efficiency Demonstration Zone in the City of Gabrovo Part Three Financing, Interaction and Lessons Learned

This part presents the structure of project financing, the contribution of the host country and the participation of other donors, whose projects have been implemented in parallel to and in co-ordination or in close interaction with this project. A review is made of the established partnerships in the course of project implementation, the major lessons learned and the need of additional international support.

Financing and co-ordination

The US Agency for International Development (USAID) provided The programmes under a number of donor projects were co-ordi- financing for the project in the framework of its own project nated with the work programme under the project "Energy Efficiency "Municipal Energy Efficiency Initiative" in both the process of project Demonstration Zone in the City of Gabrovo". Each of these projects development and project implementation. In the framework of the proceeded parallel to this project, however thanks to the co-ordina- above project the Municipal Energy Efficiency Network was found- ted efforts of the project Executing Agency EnEffect and the donors ed. The funding for the major portion of the demonstration project in a significant portion of the activities were implemented jointly or in the general district hospital in Gabrovo has been provided in the close co-ordination. framework of this US initiative. Co-ordination was established with the PHARE Programme "Regional Energy Concept / Centre for Pilot Region Lovech". The installation of the regulation and control devices in five DH substations in the apartment block in Gabrovo and support for the setting up of the municipal energy efficiency office in the city were financed under this programme. Additional funding from the energy end- users (the occupants of the residential buildings) were leveraged Fig 6. under the incentive programme for the thermostatic radiator valves. Contribution to the financing of the project and parallel project-related activities by external sources and donors

Gov.

Gabrovo Gabrovo End users Government Government Gabrovo Government EcoEnergy Gb PS EcoEnergy EcoEnergy EcoEnergy Gov. Gb Gov. Gb RENEUER Policy Training FinancingStreet Lighting District heating HB RB SB IB ÀB

USAID USAID USAID Japan USAID - US Agency for International Development USAID REC - Regional Environmental Center Norway Holland WRI - World Resources Institute REC EC - European Comission USAID WB WRI WB - World Bank UNECE Gov. = Government Gb = Gabrovo Holland PS - private sector RB - residential building REC REC UNECE SB - school building WRI WRI Canada IB - industrial building EC HB - hospital building AB - administrative building

Energy Efficiency for Sustainable Development of Municipalities 31 Financing, Interaction and Lessons Learned

Table 7. Donor projects implemented in parallel to or in Fig. 9 co-ordination with the project "Energy Efficiency Demonstration Distribution of foreign consultants by subprojects (number of persons) Zone in the City of Gabrovo" 7% Donors Amount,USD 24% 20% 1. US Agency for International Development (outside the co-financing incorporated in the project budget) 485 401 2. UN Economic Commission for Europe 89 174 3. Japan 84 000 4. The Netherlands 57 832 5. Norway 53 300 49% 6. Miscellaneous donors (REC, WRI, OECD, WB, EC, Canada)4 110 880 Local capacity building - 49%

Total: 860 587 Demonstration projects - 24%

Monitoring and evaluation of results - 7%

Project management and dissemination of results - 20%

Fig.7 Major breakdown of costs

Fig. 10 Distribution of subcontractors by subprojects 21% 57% 41 70

22%

21 6 16 Local capacity building - 57% Local capacity building - 70 Demonstration projects in Gabrovo - 22%

Project management and dissemination of results through Street lighting - 16 the demonstration offices in Sofia and Gabrovo and through EcoEnergy - 21% District heating - 6 Buildings - 21

Miscellaneous - 41

Fig. 8 Ratio of Bulgarian and foreign consultants engaged in the project (number of persons) The implementation of the project created employment for high- 41 skilled experts and technical personnel from small and medium- size local companies. More than 1,300 man/months of employment for high-skilled personnel directly employed by the Project Executing Agency have been realized alone with the funding provided by the GEF/UNDP. With respect to the engagement of local consultants, more than 660 man/months of employment have been recorded, mainly for skilled personnel. Significant number of new jobs has been created as a result of the involvement of subcontractors. The parallel financing of certain activities by other donors also contributed to the additional involvement of a large number of 438 contractors.

Foreign consultants

Bulgarian consultants 4 Regional Environmental Centre, the World Resources Institute (USA), the Organisation for Economic Co-operation and Development, the World Bank, the European Commission, Canada.

32 Energy Efficiency Demonstration Zone in the City of Gabrovo Catalyst effect

The information about the project activities, the achieved results and In co-operation with the National Association of Municipalities in the lessons learned played the role of a catalyst for initiation of similar Republic of Bulgaria, EcoEnergy influenced the national legislation projects in other EcoEnergy member-municipalities. More than 18 with respect to energy management in municipalities and improve- municipalities financed the elaboration and implementation of ener- ment of the opportunities for municipalities to procure financing for gy efficiency projects with equity funding and commercial credits. implementation of energy efficiency projects. The set up municipal The approximate total amount of leveraged means exceeds energy efficiency offices and the municipal energy programmes, BGN 8 million (approx. USD 4 million). developed in the framework of the project, preceded and in practice accelerated the approval of the Energy and Energy Efficiency Act of In its capacity of Executing Agency of the project and of Secretariat 1999 and of the Energy Efficiency Act of 2004. The latter puts for- of the EcoEnergy Network, EnEffect provided assistance of Network ward a mandatory requirement for municipalities to work out energy member-municipalities for their application for and participation in efficiency programmes and to set up municipal structures on the different donor programmes, for instance: issues of energy efficiency.The Municipality of Gabrovo was the first (a) to the Municipality of Stara Zagora for procuring funding under one to introduce heat accounting in support of the national policy for the SAVE II Programme of the European Commission for creation of restructuring of district heating companies. the Municipal Energy Efficiency Agency; The impact of the project extended beyond the frontiers of the coun- (b) to the Municipality of Gorna Oriahovitza for procurement of try and gave rise to similar activities on human and institutional grant under the USAID Programme EcoLinks for retrofit of the region- capacity building in Southeastern Europe through the RENEUER al hospital; Programme of the UN ECE and the USAID. Municipal energy programmes and investment projects were worked out for Serbia and (c) to the municipalities of Pernik and Pazardjik for obtaining bank Moldova. loans with guarantees provided under the USAID Programme DCA5 for implementation of energy efficiency projects in municipal facilities; (d) to the Municipality of Omurtag and the Khan Omurtag 2000 5 Association for development of a project entitled "Unity of Action and Development Credit Authority (DCA) Partnership for Energy Efficiency in the Omurtag Municipality" to be financed under the PHARE-ACCESS Programme. Three new energy efficiency zones were established with support from UN ECE - in Blagoevgrad, Bourgas and Pernik. As a result of the joint work with the Norwegian company ENSI International on the training of local experts, a new project for development of Bulgarian Key Numbers for Energy Auditing of Buildings was initiated with financing provided by the Government of Norway. This project is a follow-up of the co-operation with Norwegian party, which has started at the early stages of the implementation of this GEF/UNDP funded project. Municipalities, which are not yet members of EcoEnergy, also use the available information for working out of projects similar to those in Gabrovo. Activities for dissemination of Information were realised at the international level as well. The UN Economic Commission for Europe (UN ECE) uses the lessons learned from the experience in Gabrovo in activities related to demonstration zones implemented in other countries of Central and Eastern Europe. The UN ECE supports also the Regional Network for Efficient Use of Energy and Water Resources (RENEUER), which covers eight countries from Southeastern Europe. The human capacity building and the training materials developed in the course of this project are used in the activities of RENEUER. The project has accelerated the introduction of a comprehensive policy on energy efficiency in the EcoEnergy member-municipalities.

Energy Efficiency for Sustainable Development of Municipalities 33 Established partnerships

In the course of project implementation partnerships were estab- - the National Association of Municipalities in the Republic of lished with: Bulgaria in the lobbying for amendments in the regulatory framework - the Municipality of Gabrovo for implementation of the demonstra- of financing of municipalities; tions, for introduction and pilot implementation of institutional and - private Bulgarian and foreign companies, which have at different regulatory frameworks and for involvement in the management of points of time established contacts with Bulgarian municipalities for the project; implementation of energy efficiency projects on the basis of public- - members of the Municipal Energy Efficiency Network EcoEnergy private partnerships; for approval of institutional and regulatory frameworks, for develop- - Governmental and non-governmental organisations from ment and implementation of municipal energy efficiency pro- Southeastern Europe (Albania, Bosnia and Herzegovina, grammes and projects; Macedonia, Moldova, Romania, Serbia and Montenegro, Croatia), - the state-owned company Toplofikatsiya-Gabrovo SPSCo for imple- participating in the Regional Network RENEUER; mentation of the demonstration project in the field of centralised dis- - NGOs from countries from Central Europe and the former Soviet trict heating supply; Union, participating in the non-formal Municipal Network for Energy - with the private company "Mehatronika" JSCo, for co-financing and Efficiency (MUNEE). implementation of the demonstration project in the industrial building; - the state-owned company "Electrorazpredelenie (Power Distribution)", Gabrovo Branch, for support to the demonstration in the street lighting system; - the Technical University of Gabrovo for working out of the technical design for the street lighting project and for participation in the dissemination of information; - the Technical University of Sofia for working out of energy audit procedures and a methodology for energy calculations in buildings; - the Ministry of Energy and Energy Resources for ensuring support on procedure-related issues and co-financing in the implementation of the project in the district heating system; - the Energy Efficiency Agency with the Ministry of Energy and Energy Resources;

CLOSE-UP

Todor Popov Chairman of the Municipal Council of Pazardjik

The Municipality of Pazardjik created a specialized municipal envisage further development of the municipal company for limited liability company, which has implemented several energy efficiency services, which will now focus on important energy efficiency projects. The most significant one implementation of projects in municipal buildings - community among them was the replacement of the entire street lighting on houses of culture, schools, kindergartens and administrative the area of the city and of all the 31 villages on the territory of the buildings of the mayoralties and the municipality itself. municipality. Irrespective of the change of the political leadership of the local authority after the recent local elections, we can boast of having achieved continuity with respect to energy efficiency. We

34 Energy Efficiency Demonstration Zone in the City of Gabrovo Lessons learned from the project implementation Existence of a high energy efficiency potential The use of alternative sources of financing is possible It is possible to strike a balance among the interests of all stakeholders

Existence of a high energy efficiency potential Energy efficiency projects produce diverse benefits Despite the low baseline and the below-standard baseline development scenarios, in almost all the municipal sites there is a significant Project design and monitoring are important potential for energy efficiency improvement through cost-effective elements of the process projects. The payback periods on investments vary with the narrow limits of about 2.5 years for the school and the hospital to 1.7 years The implementation of the measures can be for street lighting. Although it was accompanied by difficulties and conducted without disruption of the operation of the site unfavorable external influences, the project at Toplofikatsiya-Gabrovo was a success story, since it led to an advanced penetration of heat Local capacity building should be a accounting, triggered the application of thermostatic radiator valves and was implemented in harmony with the strategy for development permanent priority of district heating in the country.The payback of the investment in the industrial enterprise Mehatronika is 1.6 years. Projects similar to the is possible to strike a good balance among the interests of all partic- demonstrations at Gabrovo were demonstrated in other population ipants in the framework of these projects. For instance, the centres throughout the country and had corroborated these indica- Municipality of Gabrovo gained control on the operation cycle of the tors and revealed the exclusively high potential for multiplication of street lighting and on the opportunity to influence directly its expen- the positive results achieved in Gabrovo at municipal sites, as well as ditures for energy consumption, while the power distribution compa- in the district heating plants and private industrial sites. ny was able to reduce its costs for maintenance of the system. In the case of the hospital, an agreement was signed for sharing the sav- The use of alternative sources of financing ings between the municipality and the hospital in the ratio 30/70%. The co-operation with the private company Mehatronika JSCo per- is possible mitted the application of a more comprehensive package of energy For some of the projects (schools, kindergartens, social care estab- conservation measures.The reduction of the energy costs of the hos- lishments) municipal budgets remain the primary source of funding. pital led to lowering of the daily price rate per bed and thus enabled At the same time, there are different opportunities for leveraging it to orient larger amounts of funding towards meeting its primary external financing through bank loans, ESCOs, Performance functions. Innovative solutions were applied at Toplofikatsiya- Contracting, etc. In the street lighting projects, it is possible to use Gabrovo SPSCo; as a result, the subscribers were encouraged to funds allocated from the specialised environmental funds (the participate directly in the implementation of the project. Ensuring the National Environmental Protection Fund), municipal budgets, donor support of the management bodies of the respective sites and the programmes and the power distribution companies. Funding for involvement of their staff - and in schools, the active involvement of projects in the district heating companies might be procured pupils - are yet other important factors for the success of the projects. through combining equity funds of the enterprises with bank loans and end-users' contribution. Projects under the Joint Implementation Energy efficiency projects produce diverse benefits mechanism might be initiated to facilitate the procurement of financing for such applications. The same as in the projects in industrial The energy efficiency projects in municipalities contain a significant enterprises, different forms of public-private partnerships may be environmental potential. They can contribute to mitigation of both used for municipal energy efficiency projects. In the typical case, the local and global environmental pollution. Prices below USD 15/t CO2 private companies have a wider access to financial, technological equivalent may be achieved, which makes these projects suitable and information resources and higher security for their investments, for financing under the Kyoto flexible mechanisms. There are while municipalities gain access to additional resources for imple- reserves for improvement of the lighting and heating levels in the mentation of energy efficiency projects. premises, of the lighting level and safety of streets and other open public spaces, of the hygiene in hospital premises. It is possible to strike a balance among the inter- Municipal energy efficiency projects contribute to creation of new ests of all stakeholders jobs and employment opportunities. They provide opportunities for expansion of the activities of small and medium-size enterprises. A broad representative involvement of all the stakeholders may be The improved public lighting leads to reduction of traffic accidents achieved in the preparation and implementation of municipal energy and crime assaults in the streets and creates preconditions for intro- efficiency projects, in order to ensure operative flexibility in their man- duction of decorative illumination of sites of cultural and historical agement. The close co-operation among all partners, beginning with value. The energy efficiency projects contribute to promotion of the the preparation of the project through its development and its imple- authority of and respect for the municipal experts and, in partticular, mentation, is a must factor for success. It has been found out that it the urban planners and project design engineers.

Energy Efficiency for Sustainable Development of Municipalities 35 Financing, Interaction and Lessons Learned

CLOSE-UP projects for energy efficiency reconstruction of street lighting systems. This underestimation often leads to partial and inefficient solutions. The availability of adequate information in terms of quantity and reliable information in terms of quality is a guarantee for objective evaluation of project results. One should not hastily discard measures, which if assessed in insulation are not cost-effective, however they may contribute to improvement of the operating conditions. Nor should one underesti- Thomas Secrest mate reconstruction measures, with although raising the implemen- Battelle/PNNL, USA, Consultant tation costs, might contribute to the success of the project and pro- long its service life. The combination of energy conservation meas- I am both impressed and I feel a great personal gratification for ures may enhance the effect of the projects and improve their tech- the accomplishments made under the project both in the com- nical and economic indicators. Very good results may be achieved mitments by members of the Network and in the efforts by the with moderate investments through a carefully selected and ade- Secretariat to help formulate the objectives of the Network and in quately planned package of energy conservation measures. The pushing activities. individual measures should be viewed as component parts of the (On the project results, we have to say that these are the begin- entire package. The use of equipment of the same type (heat ning results and there is much more that can be done, but the meters, pumps etc.) and manufacturer makes the maintenance and beginning results are a very good foundation for proceeding in operation much easier. accomplishing increased investment and use of energy in future The installation of devices for metering and control of the behaviour efforts, both in legislating, in legal capacity for it and in laying of the systems during operation and the proper recording of the the basis for national and municipal level in creating the human results is an important condition for the long-term effect of the imple- capabilities for meeting required accomplishments in the future). mented energy efficiency measures and for dissemination of the With respect to the accomplishments, and we have to say that good results in other sites. Monitoring is an indispensable tool for we are looking at the first stage of accomplishments - achieving improvement of the management and operation of the sites. results and monitoring these results - when we speak of accomplishments we are speaking about beginning of legislative and The implementation of the measures can be con- policies bases at the national and municipal levels and in creat- ducted without disruption of the operation of the site ing an organization to focus and formulate these policies and create the human capacity to conduct and implement these strategies. The demonstration projects in public buildings (hospital, schools, administrative buildings) revealed that it is possible to create such an organisation of the implementation works, which would not dis- rupt the normal rhythm of operation of the buildings. The selection of contractors for the construction and installation works by means of tenders and the splitting of the individual activities among more than one contractor is a tool for diminishing the risks and improvement of the quality of workmanship. The projects for energy efficiency retrofit of residential buildings would be much more suc- Successful projects have a positive impact on the management bod- cessful if the buildings were managed by common management ies of the local authorities and on the sites in which they have been bodies (associations of building owners) or building managers. implemented - and provoke positive public response. In the case of This lesson learned was taken into account in the recently passed hospitals, they contribute also to gaining a higher ranking during the Energy Act (2003) and Energy Efficiency Act (2004). procedures for accreditation of hospitals. If the project implementation has been adequately organised, a broad variety of participants might get involved in it, including low-income households. Local capacity building should be a permanent priority Project design and monitoring are important The systematic actions on local capacity building in municipalities elements of the process contribute to the creation of a more favorable environment for energy efficiency investments in them. Besides the technical, economic Municipal sites offer room for application of a wide range of organi- and other social and hygiene improvements, energy efficiency proj- sational and technical measures for energy efficiency improvement ects, especially those in schools, kindergartens and residential - from no-cost or low-cost ones to high-tech, although urgently nec- buildings, have also an impressive educational effect in so far that essary measures. The elaboration of high-quality energy efficiency they shape a new type of behaviour with respect to energy use. projects from a technical point of view is a guarantee for the selec- These projects may be also used as a training tool for upgrading the tion of the most cost-effective among them. skills of the operating and maintenance personnel. The training of In demonstration projects, technical design imposed itself as an the users of the sites leads to significant extension of the project life important phase in the preparation of the project, along with the cycle and multiplication of the effects from the improvements. energy audits of all municipal sites. It is necessary to overcome the Information campaigns among the population are important factors underestimation of the importance of lighting engineering design in for the long-term effect of the applied measures.

36 Energy Efficiency Demonstration Zone in the City of Gabrovo Need of additional international support Modern means for local capacity building Development of the local market for energy services Technical assistance to small and medium-sized businesses Establishment of municipal energy efficiency policy

This project produced significant contributions to the development With the support of local experts and organisations, able to provide of municipal energy efficiency policies and projects. It did not aim to energy services to the municipalities and the local industries, prereq- cover all market segments on the area of municipalities, which had uisites will be created for development of the local market for energy a potential for energy efficiency improvement. Such potential exists, services. for instance, in the activities of small and medium-size businesses in The practice in the recent years has made it evident that the pos- municipalities, which generate local employment opportunities. sibilities for rendering support to energy end-users on the part of The project has overcome a number of significant barriers to energy the state institutions are quite limited. This support is oriented efficiency in municipalities or has created prerequisites for their above all to the development of strategic approaches, upgrading overcoming or dismantling. The rapidly changing socio-political of the national legislation and its harmonisation with that of the environment in the country during the period of project implementa- European Union. Lasting results may be achieved only if experts, tion, however, gave rise to new types of hindrances, which required companies and NGOs, professionally engaged in the provision of radically new approaches and actions. These circumstances, energy services, are involved in the process of energy efficiency viewed in their totality, impose the necessity of clear identification of improvement. the requirements in the field of energy efficiency at the present stage A strategy of EcoEnergy on the issues of formation, development of development of the country in general and of Bulgarian munici- and strengthening of the local market for energy services in palities in particular and formulation of the priority tasks and actions Bulgaria needs to be worked out. In the framework of this strategy, for meeting the challenge. programmes for priority financing of municipal energy efficiency Donor support is needed for the development of active tools for local projects and the use of renewable energy sources should be capacity buildings and for maintenance and dissemination of up-to- worked out and proposed, focusing on their aggregation and aim- date information about successful practices in the energy efficiency ing at facilitation of financing procedures. In this way sustainable field, as well as for introduction of modern training methods and tools, conditions for development of the local market for energy services including Internet-based teaching aids. in Bulgaria will be created. Support for the formation and strengthening of the local market for energy services may be expected For the purposes of broader penetration of energy efficiency in all mainly in the framework of international technical assistance pro- spheres of the economic and public life in municipalities it is neces- grammes.This project has created prerequisites for such activities, sary to continue the local capacity building and strengthening both however additional efforts will be needed for the achievement of within the local administrations and outside them. Local capacity concrete results. building should become a permanent task, for whose performance modern and effective tools will be needed. It is also necessary to The development of a local market for energy services will have a expand and enrich the information about the experience of other stimulating influence on municipalities and enterprises, which have countries, and above all of the EU member-states, in the field of the potential to improve their energy efficiency performance. They energy efficiency and the use of renewable energy sources by intro- would be able to reduce their energy costs, diminish their produc- ducing modern efficient modalities of training, addressed to the fol- tion costs and improve the comfort of the work environment. lowing priority target groups: Manufacturers and suppliers of energy efficient materials and equipment will realise higher turnover. As a result, new jobs shall be - District authorities and administrations: on the issues of municipal created and hence increase of the income level for the population in energy planning; the municipalities may be achieved. - Decision-makers at the municipal level (municipal councils, may- The small and medium-size businesses in municipalities are a newly ors, senior officials): on the issues of municipal energy planning and emerging sector in the economy of Bulgaria, which needs capacity procurement of financing for energy efficiency projects; building and technical assistance for improvement of energy effi- - Experts, companies and NGOs, who are professionally engaged in ciency. providing energy services on the spot; The demonstration project in the city of Gabrovo demonstrated the - Financing organisations and banks. effect of the energy efficiency retrofit of an industrial building, however it had neither the potential, nor mechanisms for dissemination of this useful experience among representatives of the small and

Energy Efficiency for Sustainable Development of Municipalities 37 Financing, Interaction and Lessons Learned

medium-size business entities. The experience and contacts with comprehensive regulatory conditions should be created for the other enterprises of this kind have revealed that they need to a not public-private partnerships between municipalities and the private lesser extent than municipal administrations training and technical sector in the field of energy efficiency. Schemes for motivation of assistance for development of bankable projects for energy effi- municipalities and the end-users of the sites to improve the efficiency improvement. The majority of the representatives of the small ciency of their energy use should be worked out together with pro- and medium-size enterprises in Bulgaria rely more on their market posals for actions. intuition than on real knowledge and skills related to a market-based The development of the Municipal Energy Efficiency Network should economy. Many of them have never used investment credits continue with the aim to cover all municipalities and to consolidate because of the high requirements with respect to collateral on credits local structures. It should further expand its collaboration with its its. For them energy efficiency is more a motion from the media than strategic partners and in the first place with the National Association a recognised need to apply a complex of technical measures and of Municipalities in the Republic of Bulgaria, the Reform in the Local specific behaviour. Self-government Foundation, the Local Self-government Initiative, The work on introduction of municipal energy efficiency policies as the Ministry of Energy and Energy Resources, the Energy Efficiency integral parts of the municipal strategies for sustainable development Agency, the Ministry of Environment and Waters and the Ministry of should continue and expand. Regional Development and Public Works. The introduction of municipal energy efficiency planning on the basis of the established methodology should continue. To this end further development and expansion of the municipal information system on energy efficiency shall be indispensable. In close co- operation with the Ministry of Regional Development and Public Works and the Ministry of Energy and Energy Resources municipal energy planning should get co-ordinated with the activities related to the new planning regions. Specific assistance should be provided to the medium-sized, and especially to the small municipalities, for the development of their energy programmes. The joint efforts of the municipalities from the Network for upgrading of the regulatory framework on local self-government and energy efficiency in municipalities should be advanced further. Special attention should be paid to the progress of the financial decentralisation and to the clarification of the ownership rights on the elements of the local infrastructure. . The work on the practical application of the requirements of the Directive of the European Commission on the energy performance of buildings should be pursued more actively. At the same time, amendments and sup- plements to the regulatory framework should be proposed, which would allow retention by municipalities of the savings achieved through implementation of energy efficiency projects and their reinvestment in activities of the same nature. More explicit and

CLOSE-UP

Nadya Dankinova Deputy District Governor of Yambol The EcoEnergy Network is of exclusive importance for both As a consequence of the established very good contacts with municipalities and the regions. It has disseminated knowledge EcoEnergy we have set up an energy efficiency group with the on energy efficiency, which has reached out event to the small- District Council in Yambol, which is currently working on the elabo- est municipalities. The members of the Network are pioneers in ration of a district strategy for regional development. This group the dissemination of information for beginners on how to resolve will further evolve in a District Energy Efficiency Council, which will energy efficiency problems in municipalities. Thanks to the be a mandatory step in compliance with the dispositions of the knowledge and experience accumulated by EnEnergy and its new Energy Efficiency Act. There is locally preparedness to regis- active contribution the Municipality of Yambol has implemented a ter a Regional Energy Efficiency Association, which may become project for rehabilitation of street lighting. On the basis of the a member of EcoEnergy. I am convinced that the future belongs to achieved results we have conducted regional training and the public-private partnerships, supported and realized through helped new municipalities to join the Network. the NGOs as intermediaries.

38 Energy Efficiency Demonstration Zone in the City of Gabrovo Annex 1 Major products

Works and publications on the project 25. Opportunities for Overcoming of the Barriers to Municipal Energy Efficiency Projects under the Conditions of the Existing Regulatory 1. Energy Efficiency for Sustainable Development of Municipalities. Framework. EnEffect, 2001 Energy Efficiency Strategy to Mitigate GHG Emissions. Energy Efficiency Demonstration Zone in the City of Gabrovo, Republic of Bulgaria. Final 26. Investments in Energy Efficiency. Guide to Investments in Municipal report on the results from project implementation (1998-2004). EnEffect, Energy Efficiency Projects. EnEffect, 2004 2004 27. Investment in Energy Efficiency and Renewable Energy Sources. 2. Energy Efficiency Strategy to Mitigate GHG Emissions. Energy Legal, Organisational and Technical Issues Related to the Investment Efficiency Demonstration Zone in the City of Gabrovo, Republic of Process in Bulgarian Municipalities. EnEffect, 2004 Bulgaria. EnEffect, 2002 28. Guide on Business Planning. EnEffect, 2001 3. Municipalities and energy. Good practices. EnEffect, 2002 29. Funds, Programmes and Organisations Providing Financing for 4. Municipal Energy Planning. Guide for municipal decision-makers and Energy Efficiency Projects. Handbook on Financing. EnEffect, 2001 experts. EnEffect, 2004 30. Opportunities for Creation of an Energy Efficiency Investment Fund. 5. Municipal Energy Planning. Review of the Experience in Western EnEffect, September 2001 Europe, Poland, the Czech Republic and Bulgaria. EnEffect, 2002 31. Sources of Micro-financing in Bulgaria. Final Report. EnEffect, 6. Local Energy Planning - a Prerequisite for Sustainable Energy Policy. August 2001 EnEffect, 2001 32. Investigation of the Conditions for Financing of Energy Efficiency 7. Regulatory Framework for Energy Efficiency Activities in Projects in Bulgaria. Final Report. EnEffect, August 2001 Municipalities. A Guide for Municipalities. EnEffect, 2000 33. Study and Evaluation of the Existing Mechanisms for Cost Recovery 8. Fundamental of Municipal Energy Planning and Management. Brief from the Projects. EnEffect, June 2000 Guide. EnEffect, 1998 34. Conventional Sources of Financing. EnEffect, 2000 9. EcoEnergy. Municipal Energy Efficiency Network. Review of Activities during the Period 1997 - 2003. EnEffect, 2004 Demonstration projects 10. EcoEnergy. Municipal Energy Efficiency Network (folder), 2002 and 2003 (Second revised edition) 35. Light for Comfort and Safety. Demonstration Project for Energy Efficiency Improvement of the Street Lighting in Gabrovo. EnEffect, 2003 11. Municipal Energy Efficiency Network EcoEnergy. Collection of passports of Network member-municipalities. EnEffect, 2002 36. Guide for Implementation of Projects for Energy Efficiency in Street Lighting. Good Practices. EnEffect, 2003 12. Fifth Annual Conference of the Municipal Energy Efficiency Conference EcoEnergy, Sofia, 15-16 April 2003. EnEffect Library No. 9, 37. Transfer of Ownership Rights on Street Lighting onto Municipalities. 2003 Report of the Working Expert Group with the Center for Energy Efficiency EnEffect. EnEffect Library No. 3, 2002 13. Fourth Annual Conference of EcoEnergy, Gabrovo, 11-12 April 2002. EnEffect Library No. 7, 2002 38. Untapped District Heating Potential. Demonstration Project for Energy Efficiency Renovation of District Heating and District Heating 14. Third Annual Conference of the Municipal Energy Efficiency Network End-use in the City of Gabrovo. EnEffect, 2004 EcoEnergy, Sofia, 9-10 April 2001. EnEffect Library No. 1, 2001 39. Study of the Opportunities for Reconstruction of the District Heating 15. Action Programme of the Municipal Energy Efficiency Network System in the City of Gabrovo. Prepared for the Center for Energy EcoEnergy, 2002-2007 Efficiency EnEffect by the Energy Institute JSCo, July 2003 16. Municipal Energy Efficiency Network EcoEnergy, Development 40. Reconstruction of District Heating Supply and Heat End-Use for Strategy for the Period 1999-2010. Sofia, EnEffect, 2001 Energy Efficiency Improvement - Gabrovo. EnEffect, February 1999 17. Business Plan of the Municipal Energy Efficiency Network 41. Better Health Care with Less Energy. Energy Efficiency EcoEnergy, 1999-2003 Demonstration Project in the Dr. Tota Venkova Regional Hospital in the 18. Information System on Energy Consumption in Municipal Sites. City of Gabrovo. EnEffect, 2003 Demo-version. EnEffect, 2000 42. Investment for the Future. Energy Efficiency Demonstration Project in 19. Information System on Energy Consumption in Municipal Sites. User the Otetz Paissiy School in the City of Gabrovo. EnEffect, 2003 Guide. EnEffect, 2000 43. More Comfort with Less Energy. Demonstration Project for Energy 20. Learning about Energy Efficiency. Review of Activities and Results Efficiency Retrofit of a Large-panel Residential Building in Gabrovo. from Local Capacity Building for Energy Efficiency Improvement in EnEffect, 2004 Municipalities. EnEffect, 2004 44. Opportunities for Energy Conservation in a Large-panel Residential 21. Innovative Mechanisms for Dissemination of Information on Energy Building. EnEffect, 1998 Efficiency Products and Services. EnEffect, 2001 45. Partnership to Mutual Benefit. Energy Efficiency Demonstration 22. Barriers to Municipal Energy Efficiency Projects. Study on the Project in Mehatronika JSCo in Gabrovo. EnEffect, 2004 Financial Barriers to Projects. Proposals and Actions for their Alleviation 46. The Result of a Recognized Need. Demonstration Project for Energy or Overcoming. EnEffect, 2004 Efficiency Retrofit of the Administrative Building of the Gabrovo 23. Major Barriers to Implementation of Energy Efficiency Projects by Municipality. EnEffect, 2004 Bulgarian Municipalities. EnEffect Library No. 2, 2002 47. Energy Efficiency Projects in School Buildings in Bulgaria. Good 24. Proposals for Improvement of the Regulatory Framework for Practices. EnEffect, 2003 Financing of Energy Efficiency Projects in Municipalities. EnEffect. 48. Energy Efficiency Projects in Municipal Hospitals. EnEffect Library September 2002 No. 12, 2004

Energy Efficiency for Sustainable Development of Municipalities 39 49. Projects for Energy Efficiency Improvement of Street Lighting. Review School, city of Belogradchik of Experience in Bulgarian Municipalities. EnEffect, 2002 77. Energy conservation measures in the Vassil Levski Primary School, city of Botevgrad Projects worked out in the framework of the training on municipal energy 78. Energy efficiency retrofit of the Prof. Dr. Assen Zlatarov Languare planning and management, 2000-2003 High School, city of Veliko Tarnovo 50. Reconstruction of the space heating system in the building of the 79. Energy efficiency retrofit of the Ivan Vazov Primary School, city of Gabrovo Municipality Vidin 51. Energy efficiency retrofit of St. Ivan Rilski Municipal Hospital, city of 80. Energy efficiency retrofit of the T. Kirkov General Secondary School, Gorna Oriahovitza city of Lovech 52. Energy efficiency retrofit of Antim I School, city of Kazanlak 81. Energy efficiency reconstruction of the street lighting system in the 53. Energy efficiency retrofit of Hristo Prodanov School, city of Karlovo city of Montana 54. Energy auditing of Hristo Botev General Secondary School, city of 82. Energy efficiency retrofit of the "Slancho" Combined Child-care Pleven Establishment, city of Svishtov 55. Energy efficiency reconstruction of the street lighting in the city cen- 83. Energy efficiency retrofit of the Nikola Vaptzarov General Secondary tre, city of Rousse School, city of Aytos 56. Energy efficiency retrofit of the Geo Milev Natural Sciences and 84. Energy efficiency retrofit of the district hostel for high-school pupils Mathematics High School, city of Stara Zagora "Mladost", city of Silistra 57. Introduction of energy conservation measures in the Otetz Paissiy 85. Repair and reconstruction of the "Proletna Daga" daily kindergarten, School for Handicapped Children, city of Bourgas city of Berkovitza 58. Energy efficiency retrofit of Daily Kindergarten No. 30, Chayka 86. Energy efficiency retrofit of the Mitko Palauzov daily kindergarten, Quarter, Primorski District, city of Varna city of Levski 59. Energy efficiency reconstruction of the street lighting system in the 87. Automation of the street lighting in the municipality, city of Troyan city of Dobrich, Phase One 88. Energy efficiency reconstruction of the street lighting in the city. 60. Energy efficiency retrofit of the administrative building of the munici- Subproject "Street lighting of the Paissiiy Street and Kiustendja Street, pality, city of Kotel city of Targovishte 61. Introduction of energy efficiency measures in "Academician D. 89. Energy efficiency retrofit of the "Shtastlivo Detstvo" Combined Child- Yordanov" Junior High School, city of Omurtag care Establishment, city of Sevlievo 62. Energy efficiency reconstruction of the street lighting in the Municipality of Pleven, District V Municipal energy efficiency programmes, developed in the course of 63. Energy efficiency reconstruction of the street lighting along the training on municipal energy planning and management, 2000-2003 Bulgaria Blvd., city of Razgrad 90. Aytos Municipality. Energy Efficiency Programme, May 2003 64. Energy efficiency retrofit of the V.I. Papazian daily kindergarten, city 91. Belene Municipality. Energy Efficiency Programme, July 2002 of Sliven 92. Belogradchik Municipality. Energy Efficiency Programme, July 2002. 65. Project for energy efficiency retrofit of the Atanas Radev Mathematics In process of implementation. High School, city of Yambol 93. Berkovitza Municipality. Energy Efficiency Programme, May 2003 66. Reconstruction of the street lighting system, subproject No. 210 Strumsko, city of Blagoevgrad 94. Blagoevgrad Municipality. Energy Efficiency Programme, February 2002 67. Reconstruction of the street lighting system in the city of Zlatograd 95. Botevgrad Municipality. Energy Efficiency Programme, July 2002 68. Reconstruction of the street lighting system in the city of Kardjali 96. Bourgas Municipality. Energy Efficiency Programme, October 2001. 69. Energy efficiency retrofit of the Liuben Karavelov Primary School, city In process of implementation. of Pazardjik 97. Varna Municipality. Energy Efficiency Programme, October 2001. In 70. Energy efficiency retrofit of daily kindergarten No. 8, city of Pernik process of implementation. 71. Energy efficiency retrofit of the St. Kiril and Metodiy Primary School, 98.Veliko Tarnovo Municipality. Energy Efficiency Programme, July 2002. city of Razlog In process of implementation. 72. Energy efficiency retrofit of the St. Kiril and Metodiy Primary School, 99. Vidin Municipality. Energy Efficiency Programme, July 2002. city of Slivnitza Approved by the Municipal Council, November 2002 73. Energy efficiency retrofit of the hostel of Primary School No. 2, city of 100. Gabrovo Municipality. Energy Efficiency Programme, October 2000. Haskovo In process of implementation. 74. Energy efficiency retrofit of the Ivan Vazov Primary School, city of Stara Zagora 101. Gorna Oriahovitza Municipality. Energy Efficiency Programme, October 2000. Approved by the Council of Ministers, February 2002 75. Energy efficiency retrofit of the Banner of Peace Combined Child- care establishment, city of Belene 102. City of Dobrich Municipality. Energy Efficiency Programme for the period until 2006, Phase One 2001-2003, October 2001. Approved by 76. Energy efficiency retrofit of the Hristo Botev General Secondary the Municipal Council, November 2001

40 Energy Efficiency Demonstration Zone in the City of Gabrovo 103. Zlatograd Municipality. Municipal Energy Efficiency Programme, 129. Genchev, Z. The Municipal Energy efficiency network - present and February 2002 future. EcoEnergy Newsletter, 1-2/1999, p.2-3 104. Kazanlak Municipality. Municipal Energy Efficiency Programme, 130. Genchev, Z. Strategy for development of EcoEnergy, EcoEnergy October 2000 Magazine, 1/2002, p. 14-15 105. Karlovo Municipality. Municipal Energy Efficiency Programme, 131. Major results from the implementation of the 1-year programme of October 2000 the Municipal Energy Efficiency Network 1997-1998. EcoEnergy Newsletter, 3-4/1998, p. 18 106. Kotel Municipality. Municipal Energy Efficiency Programme, October 2001 132. First Annual Conference of the Municipal Energy Efficiency Network EcoEnergy, December 1998. EcoEnergy Newsletter, 1-2/1999, p. 4-7 107. Kardjali Mnicipality. Energy Efficiency Programme 2002-2006, January 2002. In process of implementation. 133. Report on the activities of the Municipal Energy Efficiency Network EcoEnergy for 1999. EcoEnergy Newsletter, 1/2000, p. 8-10 108. Levski Municipality. Municipal Energy Efficiency Programme, 2003. Approved by the Municipal Council, April 2003 134. Business trips of the Secretariat to Network member-municipalities. EcoEnergy Newsletter, 1/2000, p.10 109. Lovech Municipality. Municipal Energy Efficiency Programme, July 2002. In the process of implementation. 135. Business meeting of municipal energy efficiency officers. EcoEnergy Magazine, 2/2002, p. 14-15 110. Omourtag Municipality. Energy Efficiency Programme, October 2002. Approved by the Municipal Council, October 2002. 136. Energy efficiency offices in municipalities. EcoEnergy Newsletter, 1-2/1999, p. 20 111. Pazardjik Municipality. Energy Efficiency Programme, February 2002. In process of implementation. 137. Meeting of the Board of Directors of EcoEnergy. EcoEnergy Magazine, 1/2003, p. 17-18 112. Pernik Municipality. Energy Efficiency Programme, February 2002. In process of implementation. 138. Genchev, Z. Introduction to municipal energy planning and management. EcoEnergy Newsletter, 1-2/1998, p. 1-5, 8-11 113. Pleven Municipality. Energy Efficiency Programme, October 2001. In process of implementation. 139. Genchev, Z. The energy planning process. EcoEnergy Magazine, 2/2003, p. 6-7 114. Razgrad Municipality. Energy Efficiency Programme, October 2001. In process of implementation. 140. Spiridonova, J. Sustainable development and energy policy. EcoEnergy Magazine, 4/2002, p. 4-5 115. Razlog Municipality. Energy Efficiency Programme, February 2002 141. Investment opportunities in the project "Energy Efficiency 116. Rousse Municipality. Energy Efficiency Programme, October 2000. Demonstration Zone in Gabrovo", EcoEnergy Newsletter, 3-4/1998, p.17 In process of implementation. 142. Doukov, D. Investments in energy efficiency. EcoEnergy 117. Svishtov Municipality. Municipal Energy Efficiency Programme, July Newsletter, 1/2000, p. 6 2002. In process of implementation. 143. Doukov, D. Energy strategy and municipal budgets. EcoEnergy 118. Sevlievo Municipality. Energy Efficiency Programme, May 2003. In Magazine, 1/2003, p. 9 process of implementation. 144. Specialised training on energy efficiency in municipalities, 119. Silistra Municipality. Energy Efficiency Programme, May 2003. In EcoEnergy Newsletter, 1-2/1999, p. 20 process of implementation. 145. Capacity building - a strategic task of the period of transition, 120. Sliven Municipality. Municipal Energy Efficiency Programme, EcoEnergy Newsletter, 3/1999, p. 10 October 2001. Approved by the Municipal Council, September 2002 146. Giurova, Z. Training courses on municipal energy planning and 121. Slivnitza Municipality. Energy Efficiency Programme, February 2002 management, EcoEnergy Magazine, 1/2002, p. 13 122. Stara Zagora Municipality. Energy Efficiency Programme, October 147. EnEffect has trained another nine municipal teams. EcoEnergy 2000. In process of implementation. Magazine, 2/2003, p. 19 123. Troyan Municipality. Energy Efficiency Programme, May 2003 148. Chavdarov, G. Distance learning for municipal energy specialists. EcoEnergy Magazine, 4/2003, p. 19 124. Targovishte Municipality. Energy Efficiency Programme, May 2003. In process of implementation. 149. Giurova, Z. The US experience on how to keep informed and get trained through Internet, EcoEnergy Magazine, 4/2003, p. 20-21 125. Haskovo Municipality, Energy Efficiency Programme for the period 2002-2004, February 2002. Approved by the Municipal Council, May 150. Peeva, V. Business meeting of municipal experts in Bankya. 2002 EcoEnergy Magazine, 4/2002, p. 18 126. Yambol Municipality, Municipal Energy Efficiency Programme, 151. What EcoEnergy does should serves as a reminder for the states- October 2001. In process of implementation. men. Survey among municipal energy efficiency officers. EcoEnergy Magazine, 4/2002, p. 14-15 152. Incentives for energy conservation in municipal sites are needed. Articles in EcoEnergy Magazine Survey among municipal experts from EcoEnergy. EcoEnergy Magazine, 1/2003, p. 13 127. Start of a new energy efficiency project: "Energy Efficiency Strategy to Mitigate GHG emissions. Energy Efficiency Demonstration Zone in 153. Peeva, V. Demonstration zone in Gabrovo. One year since project Gabrovo". EcoEnergy Newsletter, 1-2/1998, p. 19-20 start. EcoEnergy Newsletter, 3/1999, p. 6 128. Municipal Energy Efficiency Network in Bulgaria. EcoEnergy 154. Petkova, B. Demonstration zone in Gabrovo: Renovation of the Newsletter, 1-2/1998, p. 6-7 street lighting - a pilot project. EcoEnergy Newsletter, 3/1999, p. 7

Energy Efficiency for Sustainable Development of Municipalities 41 155. Stoykov, A. Demonstration zone in Gabrovo: Heat allocators fitted 161. Tchervilov, L. What did we learn from the demonstrations. for all end users of Toplofikatsiya Gabrovo. EcoEnergy Newsletter, EcoEnergy Magazine, 3/2002, p. 4-5 3/1999, p. 8 162. EcoEnergy competition for the best municipal energy efficiency 156. Tchervilov, L. Demonstration zone in Gabrovo: Otets Paisii High project. Group "Buildings" EcoEnergy Magazine, 2/2003, p. 18. Group School. Residential building at 23, Tota Venkova St. EcoEnergy "Street lighting" EcoEnergy Magazine, 3/2003, p. 17 Newsletter, 3/1999, p. 9 163. Chobanova, B.The steady commitment of municipalities is the root 157. Tchervilov, L. Demonstration project for energy efficiency retrofit of of success. Annual project review by the GEF/UNDP. EcoEnergy the Dr.Tota Venkova Regional Hospital, Gabrovo - implementation, mon- Magazine, 3/2003, p. 19-20 itoring and results. EcoEnergy Newsletter, 1-2/1999, p. 11-13 158. Round-table discussion on "Efficient use of land plots, buildings and the technical systems in hospital complexes", December 1998, EcoEnergy Newsletter, 1-2/1999, p. 17-19 159. Iliev, D. Options for cost accounting in hospitals. EcoEnergy Newsletter, 1-2/1999, p. 15 160. Peneva, E. State-of-repair of hospital buildings in Bulgaria. EcoEnergy Newsletter 1-2/1999, p. 14

Annex 2 Projects implemented by EnEffect in parallel with the GEF/UNDP project and financed by other donors

1. Financial, economic and environmental evaluation in connection with 14. Results from the elaboration of energy study and development of the creation of a Bulgarian Energy Efficiency Fund, 2004 concept paper for the heat supply to the Thracian University, city of Stara Zagora, for the purposes of design for gasification, 2001 2. Feasibility study of the potential for implementation of a JI project in Rousse, Bulgaria. Technical and financial study and potential for reduc- 15. Construction of a natural gas fired district heating co-generation tion of GHG emissions as a result of the proposed expansion of the dis- plant in the city of Stamboliyski, Business plan, February 2002 trict heating network in Rousse, 2003-2004 16. Energy efficiency at district heating end-users in Bulgaria, 3. Green Investments Scheme 2003-2004 Toplofikatsiya Pleven, 2000-2001 4. Capacity building for Joint Implementation, 2003-2004 17. Energy audit, technical and economic justification and environmental benefits in connection with the energy efficiency reconstruction of the 5. Financing of energy efficiency investments and carbon emissions building of the Court of Justice in Sofia, 2001 trading: state and prospects, 2003 18. Energy audit in the "Osmi Mart" JSCo textile factory, October 2001 6. Provision of methodological assistance to Bulgarian municipalities for identification and development of energy efficiency projects, 19. Monitoring of the biomass fired existing boiler system in the Ivan 2002-2003 Skenderov Municipal Hospital for Active Treatment in the city of Gotze Delchev, 2003 and 2004 7. Partnership in the field of RES and energy efficiency, 2003 20. Energy efficiency reconstruction of the Ivan Skenderov Municipal 8. Investigation of the opportunities for assisting low-income households Hospital for Active Treatment in the city of Gotze Delchev. Business plan. in Southeastern Europe in the framework of a RENEUER Project, 2003 Vol. 1 and Vol. 2 - Energy Audit. Prepared for the Gotze Delchev 9. Energy efficiency reconstruction and modernisation of street lighting Municipality, 2003 in the city of Bourgas - entry/exit highways and main streets in the city 21. Monitoring and evaluation of the savings achieved as a result of the center, 2003 implemented energy efficiency measures in the General District 10. Energy efficiency reconstruction of the street lighting system in the Hospital, city of Varna. Association of Energy Engineers - Bulgaria and Municipality of Samokov, 2003 EnEffect, 2001 11. Energy efficiency modernisation of the street lighting system in the 22. Energy efficiency reconstruction of the St. Ivan Rilski Municipal city of Varna. Technical and economic evaluation, 2002 Hospital, city of Gorna Oriahovitza, Republic of Bulgaria. EnEffect, Electrotek Concepts Inc. and Gorna Oriahovitza Municipality, 2000 12. Energy efficiency reconstruction of municipal sites in the city of Simitli. Business plan, 2003 23. Energy efficiency reconstruction of the air conditioning system in the surgery theatres of the Prof. Dr. St. Kirkovitch District Hospital, city of 13. Gasification and energy efficiency reconstruction of municipal sites Stara Zagora, 1999 in the city of Dobrich (schools and kindergartens). Business plan, 2003 24. Utilisation of waste wood for centralised heat supply to buildings in Bulgaria. Feasibility study, 2003

42 Energy Efficiency Demonstration Zone in the City of Gabrovo 25. Utilisation of waste wood for centralised heat supply to municipal 49. Nakova, K. High evaluation of the training courses conducted by buildings in Haskovo. Business plan, 2003 EnEffect in Serbia and Moldova. EcoEnergy Magazine, 4/2002, p. 20 26. Production of Low-cost biomass fueled boiler systems for application 50. Chervilov, L., International experience of mutual interest. in public buildings and block-heating in Bulgaria, 2003-2004 International conference on "Efficient energy management and energy conservation in municipalities", Niska Banja, Serbia. EcoEnergy 27. Efficient kiln and steaming chamber in the wood-working enterprise Magazine, 4/2003, p. 22 "Pobeda" JSCo in Tvarditza, 2001-2002 51. Norwegian assistance for energy auditing of buildings. Seminar on 28. EnerBuild. Studies and technology surveys of the new accession- Key Numbers. EcoEnergy Magazine, 2/2003, p. 16-17 candidate states in the field of energy efficiency in buildings, 2002-2003 52. Stoykov, A. Bulgarian specialists get trained on a Norwegian method for energy auditing of buildings. EcoEnergy Magazine, 29. The power sector reform in Bulgaria. EnEffect Library No. 5, 2002 4/2003, p. 16 30. Regional Network for Efficient Use of Energy and water resources 53. Manchev, P. Energy services companies - between the interest and (RENEUER), EnEffect Library No. 4, 2002 the law. EcoEnergy Magazine, 1/2003, p. 10 31. USAID and UN ECE Project Municipal Network for Energy Efficiency 54. Doukov, D. Regional conference for alleviation of the period of tran- (MUNEE), 2001-2002 sition. EcoEnergy Magazine, 4/2003, p. 2-3 32. Project Document of SCORE Programme (Support for Co-operation 55. Phillips, M. et al. Power sector reform and social protection in on Efficient Energy Use) for Bulgaria, 2000 Bulgaria. EcoEnergy Magazine, 4/2003, p. 3-4 33. Study of existing and potential companies for ESCO services, 2002 56. Dinev, K. Municipal loan through issue of bonds for energy efficien- 34. Development of Bulgarian versions of the software products ENSI cy reconstruction of street lighting in the Varna Municipality. EcoEnergy Key Numbers and ENSI Economy Software. Guide on Energy Auditing. Magazine, 2/2003, p. 14-15 EnEffect, 2002 57. Andonov, Tzv. What does the Pernik Municipality do to save energy? 35. UN Framework Convention on Climate Change and the Kyoto Renewal of street lighting and improved efficiency of district heating. Protocol. A Guide for Beginners. Translated from English. EnEffect, EcoEnergy Magazine, 2/2002, p. 5-6 2001 58. Stoykov, A. Phase Two of the demonstration project in Pleven. Energy 36. Vocabulary of basic terms related to climate change. Implemented efficiency at district heating end-users in Bulgaria. EcoEnergy with financial assistance with the Embassy of The Netherlands Kingdom Magazine, 1/2002, p. 18-19 under the Special Fund MATRA/KAP. EnEffect, 2002 59. Mariov, D. Gasification of the Thracian University in Stara Zagora. 37. Policy and measures for reduction of GHG emissions. EnEffect EcoEnergy Magazine, 1/2002, p. 20-21 Library No. 8, 2002 60. Simeonov, K. The first private district heating plant in Bulgaria. The 38. Access to information and public participation in decision-making on Municipality of Stamboliyski invests in a private TPP. EcoEnergy climate change. EnEffect Library No. 6, 2002 Magazine, 2/2003, p. 12--13 39. Development of a National Registry for Bulgaria. Options and 61. Simeonov, K. Biomass is the cheapest fuel. EcoEnergy Magazine, recommendations. OECD/IEA Project for the Annex I Expert Group. 4/2003, p. 13-15 Support for the countries with economies in transition to implement the 62. Simeonov, K. Biomass as energy source. Projects in the wood- Kyoto Protocol. EnEffect, June 2002 working enterprise "Pobeda" JSCo in Tvarditsa and the Ivan 40. Survey of capacity for national systems for Kyoto Protocol (Articles 5, Skenderov Hospital in Gotze Delchev. EcoEnergy Magazine, 1/2003, 7 and 8). Bulgaria, October 2000 p. 15 41. Capacity to address climate change in Bulgaria. Final report. 63. Stoycheva, D. Mitigation of climate change is a global priority. EnEffect, April 2000 COP 9, Milan, December 2003. EcoEnergy Magazine, 4/2003, p. 22-23 42. The Joint Implementation mechanism and its pilot phase in Bulgaria, October 1999 64. Stoycheva, D. Eighth Conference of the Parties. EcoEnergy Magazine, 4/2002, p. 6-7 43. Development and maintenance of a website "Policy for energy efficiency of household appliances in the countries of Central and Eastern 65. Peeva, V. Bulgarian National Registry on Climate Change. Initial Europe", 2003-2004 results of the pilot study for Bulgaria. EcoEnergy Magazine, 2/2002, p. 10-11 44. Maintenance of a website of the UN ECE Project "Energy Efficiency 21", 2001-2004 66. Stoykov, A. Baseline scenarios for projects under the JI and Clean Development mechanisms. EcoEnergy Magazine, 4/2003, 45. Development and maintenance of a website of the RENEUER p. 5-9 Project, 2000-2002

Articles in the EcoEnergy Magazine 47. Przevorski, D. Municipal Network for Energy Efficiency - Regional project MUNEE. Alliance to Save Energy, USA. EcoEnergy Magazine, 1/2002, p. 9 48. Regional co-ordination meeting of RENEUER. Business missions in the region. EcoEnergy Magazine, 2/2002, p. 16-19

Energy Efficiency for Sustainable Development of Municipalities 43 Annex 3 Calendar of Events Held in the Period 1998 - 2004

ANNUAL CONFERENCES of EcoEnergy 22. Seminar on the theme "Energy Forum 2000". Celebration of the Day of Bulgarian Municipalities, Pazardjik, 11-13 October 2000 1. First Annual Conference of EcoEnergy with international participation, Sofia, 9 - 10 December 1998 23. Seminar: "Energy Efficiency in Municipalities", held in the city of Montana (jointly with the "EcoGlasnost" National Movement and the State 2. Second Annual Conference of EcoEnergy, Pazardjik, 3 - 4 April 2000 Energy Efficiency Agency), 20 March 2000 3. Third Annual Conference of EcoEnergy with accompanying exhibition 24. Seminar on "Energy Efficiency in Municipalities" of EcoEnergy and of energy efficient materials and products, Sofia, 9-10 April 2001 municipalities from the "Trakiya" Regional Association of Municipalities, 4. Fourth Annual Conference of EcoEnergy with accompanying exhibi- held in the city of Stara Zagora, 16 September 2002 tion of energy efficient materials and products, Gabrovo, 11-12 April 25. Joint seminar on "Energy Efficiency in Municipalities" of EcoEnergy 2002 and municipalities from the Association of Southwestern Municipalities, 5. Fifth Annual Conference of EcoEnergy, Sofia, 15-16 April 2003 held in the city of Blagoevgrad, 20 September 2002 6. Sixth Annual Conference of EcoEnergy with international participation, 26. Joint seminar on "Energy Efficiency in Municipalities" of EcoEnergy Sofia, 16-17 April 2004 and municipalities of the Association of Black Sea Municipalities, held in the city of Varna, 30 October 2002 27. Joint seminar on "Energy Efficiency in Municipalities" of EcoEnergy WORKSHOPS, SEMINARS and municipalities of "Central Stara Planina" Regional Association of Financing Municipalities, held in the city of Troyan, 31 October 2002 7. Meeting on planning of the project "Municipal Energy Efficiency 28. Seminar on the theme *Climate Change capacity in Bulgaria", held in Initiative. Development Credit Authority (DCA) Scheme", Sofia, 16 July Sofia (jointly with REC for Cerntral and Eastern Europe), 12 November 1999 2002 8. Business meeting: "Development and financing of energy efficiency 29. Joint seminar on "Energy Efficiency in Municipalities" of EcoEnergy projects", Sofia, 9 December 1999 and municipalities of the "Hebar" Association of Municipalities from the South-Central Region, held in Plovdiv, 21 February 2003 9. Business meeting for discussion of energy efficiency projects to be financed under the programme "Municipal Energy Efficiency Initiative. Development Credit Authority (DCA) Scheme", Pazardjik, 8-10 March 2000 Miscellaneous 10. Workshop on the subject "Municipal Energy Efficiency Initiative. 30. Meeting of the Board of Directors of EcoEnergy, the Black Sea Development Credit Authority (DCA) Scheme", Sofia, 22-24 Regional Energy Center, the National Energy Efficiency Agency and the March 2000 Ministry of Environment and Waters for discussion of the National Energy Efficiency Programme, held in Belene, 7-8 April 1998 11. Seminar: "Energy Performance Contracting", 5 December 2000 31. Seminar of FEMOPET and the Black Sea Regional Energy Center on 12. Seminar: "Financing of municipal energy efficiency projects". Sofia, "Energy management - an indispensable practice for energy conserva- 26 February 2002 tion in industry through energy efficient and environmentally-sound solutions", held in Gabrovo, 8 October 1998 13. Seminar: "Schemes and sources of financing for municipal projects", Sofia, 16 April 2003 32. Round-table discussion: "Efficiency in Bulgarian hospitals in the light of the health care reform", 10 December 1998 33. Business breakfast on "Ownership rights and municipal sites for Street lighting energy efficiency improvement", Sofia, 4 May 2000 14. Sessions of the Working Group on Street Lighting, 2000 34. Business meeting on the subject "Review of the Project Document of 15. Seminar on street lighting, Plovdiv, 21 February 2004 the SCORE Programme for Bulgaria", Sofia, 9 November 2000 16. Seminar on street lighting, Lovech, 6 March 2004 35. Joint meeting of the Board of Directors of the "Dunav" Association of Danubian Municipalities and the Secretariat of EcoEnergy, held in Svishtov, for discussion of the joint activities on the issues of energy effi- Seminars on climate change ciency at the local level in Belene, 19 July 2001 17. Bulgarian-Dutch Seminar: "Opportunities for application of the JI 36. Seminar on "Energy efficiency at district heating end-users", held in mechanism in the CEE countries", 19 October 1998 Pleven, 11 October 2001 18. Seminar: "Global climate change and development", Sofia, 21 June 2000 37. Closing seminar on "Demonstration project for gas supply for the residential sector in Botevgrad", 21 November 2001 19. Participation of representatives of EcoEnergy in regional seminars on climate change, held in Romania, 30 October - 3 November 2000, 13-17 38. Seminar on "Municipal Energy Planning and Management" for the November 2000; 12-16 February 2001 Municipal Council of the city of Dobrich, 23 November 2001 39. Seminar under the PHARE-ACCESS Programme on "Energy Efficiency in Municipalities", Omurtag, 10 June 2002 Seminars on awareness raising 40. Seminar on the theme "Cost-effective upgrading of high quality tim- 20. Seminar on "Energy Efficiency in Municipalities", city of Pernik (joint- ber production", Tvarditza, 25 March 2002 ly with the "EcoGlasnost" National Movement and the State Energy Efficiency Agency), 10 March 2000 41. Seminar on the subject "Unity of action and partnership for energy efficiency in the municipality of Omurtag", Omurtag, 31 July 2002 21. Joint seminar on "Energy Efficiency in Municipalities" for EcoEnergy and municipalities from the "Dunav" Association of Danubian 42. Participation of municipalities from EcoEnergy in a seminar of ESD- Municipalities, held in Belene, 17-18 May 2002 Bulgaria in Velingrad, 25 September 2002 44 Energy Efficiency Demonstration Zone in the City of Gabrovo 43. Seminar on "Energy Efficiency in Municipalities" for municipalities REGIONAL MEETINGS from Bourgas, Yambol and Sliven Districts, held in Yambol, 8 November 2002 61. Regional meeting of EcoEnergy member-municipalities from Northern Bulgaria, Lovech, 20-21 February 2004 44. Business meeting on the subject "Opportunities for partnerships to mutual benefit between Bulgarian municipalities and the private 62. Regional meeting of EcoEnergy member-municipalities from sector in the field of renewal of the municipal infrastructure for more Southern Bulgaria, Plovdiv, 5-6 March 2004 efficient use of energy and water resources, Sofia, 15 November 2002 INTERNATIONAL CONFERENCES AND SEMINARS 45. Norwegian-Bulgarian Seminar: "Methods and tools for energy audit- 63. International Conference on "Regional Network for Efficient Use of ing of buildings", Sofia, 29 January 2003 Energy Resources", Sofia, 17-19 November 1999 46. Seminar on "Automated waste biomass fueled boiler of 400 kW heat 64. International Conference on "Regional Network for Efficient Use of generation capacity", Gotze Delchev, 10 December 2003 Energy and Water Resources", Sofia, 20-22 January 2002 47. Participation of municipalities from EcoEnergy in a seminar of ESD- 65. Participation of representatives of EcoEnergy in an international sem- Bulgaria, Sofia, 12 November 2003 inar, organised by the US Agency for International Development on "Assistance of Low-income People", Sofia, 21 - 22 October 2003 PRESENTATIONS 66. Participation of representatives of EcoEnergy in an international seminar on "Financing for energy efficiency and carbon emissions 48. Presentation of the project "Energy Efficiency Strategy to Mitigate trading: state and prospects", financed by UN ECE, Sofia, 23 October GHG Emissions. Energy Efficiency Demonstration Zone in Gabrovo", 2003 Blagoevgrad, 16 September 1999 49. Presentation at the Annual Conference of "Trakiya" Regional Association of Municipalities: "Energy Efficiency - State and Prospects TRAINING for Bulgarian Municipalities", Stara Zagora, 22 November 2000 67.Training-of-trainers course on energy planning and management and 50. Presentation at the Annual Conference of the "Dunav" Association of energy auditing of local-level projects, held in Sofia, Karlovo, Gabrovo, Danubian Municipalities on the subject "Local Authorities, Partnerships Stara Zagora and Blagoevgrad, January - September 1999 and Sustainable Development", Rousse, 30 November - 1 December 68. First training course on Municipal Energy Planning and Management 2000 for EcoEnergy member-municipalities, held in Rousse, Gabrovo, 51. Presentation of the energy efficiency audit and business plan for the Kazanlak and Stara Zagora, May - October 2000 retrofit of the hospital in Gorna Oriahopvitza under the EcoLinks 69. Second training course on Municipal Energy Planning and Programme and the Municipal Energy Efficiency Programme of Gorna Management for EcoEnergy member-municipalities, held in Dobrich, Oriahovitza, 28 February 2001 Yambol, Varna, Bourgas, April - October 2001 52. Presentation of the municipal energy database and the software 70. Third training course on Municipal Energy Planning and used by EcoEnergy member-municipalities at a seminar on the subject Management for EcoEnergy member-municipalities, held in "Software Tools Used for Energy Planning and Management in the Blagoevgrad, Haskovo, Sofia and Pazardjik, October 2001 - February Municipalities of Eastern Europe and the Former Soviet Union" , Warsaw, 2002 Poland, 26 July 2001 71. Conducting of courses on Municipal Energy Planning and 53. Presentation of EcoEnergy at the Eighth Annual Conference of Management for municipalities from Serbia and Montenegro, October Energie-Cites, Krakow, Poland, 3 - 4 April 2003 2001 - April 2002 54. Presentation of EcoEnergy and projects implemented by its member- 72. Support for the Bulgarian demonstration zones Blagoevgrad, municipalities at a seminar of the Energy Efficiency Agency, Sofia, 4 - 6 Bourgas and Pernik for development and implementation of energy effi- June 2003 ciency projects, Sandanski, 16-18 April 2002 55. Presentation of EcoEnergy and projects implemented by its member- 73. Support for the Bulgarian demonstration zones Blagoevgrad, municipalities at a conference on the subject "Efficient Energy Bourgas and Pernik for development and implementation of energy effi- Management in Municipalities and Cities and Efficient Energy ciency projects, Bourgas, 3-6 June 2002 Conservation as Important Resources for Local Development", Niska Banja, Serbia and Montenegro, 30 - 31 October 2003 74. Conducting of courses on Municipal Energy Planning and Management for municipalities from Moldova, Kishinev, 14-21 June 56. Presentation of EcoEnergy at the Ninth Annual Conference of 2002 Energie-Cites in Martigni, Switzerland, 22-23 April 2004 75.Training on how to conduct energy auditing of municipal sites, city of Dobrich, 25-26 July 2002 MEETINGS OF MUNCIPAL ENERGY EFFICIENCY OFFICERS 76. Fourth training course on Municipal Energy Planning and 57. Seminar for municipal energy efficiency officers on the subject Management for EcoEnergy member-municipalities, held in Botevgrad, "Municipal Energy Planning and Management", 12 February 1998 Vidin, Lovech, Veliko Tarnovo, March - July 2002 58. Business meeting of municipal energy efficiency officers from 77. Fifth training course on Municipal Energy Planning and Management EcoEnergy on the issues of the Information System on energy con- for EcoEnergy member-municipalities, held in Sevlievo, Sofia, Troyan, sumption in municipal sites, 13-14 December 2001 Sofia, November 2002 - May 2003 59. Business meeting of the graduates from the ciourse on municipal 78. Training on work with the software products for quick energy and energy planning and management, Bankia, 21-22 November 2002 financial calculations with Bulgarian Key Numbers, 7-8 December 2003 60. Workshop on the issues of energy efficiency in buildings, Gabrovo, 27 November 2002 Energy Efficiency for Sustainable Development of Municipalities 45 EXHIBITIONS 102. Inauguration of a municipal energy efficiency office in Kotel Municipality, 24 October 2000 79. Exhibition of energy efficient materials and products, organised as an accompanying event to the Third Annual Conference of EcoEnergy, 103. Inauguration of a municipal energy efficiency office in Belene Sofia, 9-10 April 2001 Municipality, 29 November 2000 80. Exhibition of energy efficient materials and products, organised as 104. Inauguration of a municipal energy efficiency office in Svishtov an accompanying event to the Fourth Annual Conference of EcoEnergy, Municipality, 29 November 2000 Gabrovo, 11-12 April 2002 105. Inauguration of a municipal energy efficiency office in Botevgrad 81. Exhibition of children's drawings, organised as an accompanying Municipality, 15 February 2001 event to the Fourth Annual Conference of EcoEnergy, Gabrovo, 11-12 April 2002 106. Inauguration of a municipal energy efficiency office in Slivnitza Municipality, 5 March 2001 82. Presentation of EcoEnergy with exhibition and information materials at the Annual Conference of the National Association of Municipalities in 107. Inauguration of a municipal energy efficiency office in Vidin the Republic of Bulgaria, Sofia, 24 January 2003 Municipality, 15 March 2001 83. Organisation of exposition about the activities of EnEffect and the 108. Inauguration of a municipal energy efficiency office in Belogradchik results from the demonstration projects in the Otets Paisii General Municipality, 16 March 2001 Secondary School, Gabrovo, 30 October 2003 109. Inauguration of a municipal energy efficiency office in Kardjali Municipality, 27 March 2001

INAUGURATION OF MUNICIPAL ENERGY EFFICIENCY OFFICES IN 110. Inauguration of a municipal energy efficiency office in Zlatograd EcoEnergy MEMBER-MUNICIPALITIES Municipality, 28 March 2001 84. Inauguration of a municipal energy efficiency office in Gabrovo 111. Inauguration of a municipal energy efficiency office in Haskovo Municipality, 3 May 1999 Municipality, 4 May 2001 85. Inauguration of a municipal energy efficiency office in Gorna 112. Inauguration of a municipal energy efficiency office in Razlog Oriahovitza Municipality, 19 May 1999 Municipality, 6 May 2001 86. Inauguration of a municipal energy efficiency office in Karlovo 113. Inauguration of a municipal energy efficiency office in Lovech Municipality, 20 May 1999 Municipality, 21 July 2001 87. Inauguration of a municipal energy efficiency office in Blagoevgrad 114. Inauguration of a municipal energy efficiency office in Veliko Municipality, 16 September 1999 Tarnovo Municipality, 27 February 2002 88. Inauguration of a municipal energy efficiency office in Stara Zagora 115. Inauguration of a municipal energy efficiency office in Sevlievo Municipality, 21 May 1999 Municipality, 14 October 2002 89. Inauguration of a municipal energy efficiency office in Pleven 116. Inauguration of a municipal energy efficiency office in Targovishte Municipality, 10 February 2000 Municipality, 15 October 2002 90. Inauguration of a municipal energy efficiency office in Kazanlak 117. Inauguration of a municipal energy efficiency office in Levski Municipality, 2 March 2000 Municipality, 17 October 2002 91. Inauguration of a municipal energy efficiency office in Rousse 118. Inauguration of a municipal energy efficiency office in Krumovgrad Municipality, 9 March 2000 Municipality, 24 October 2002 92. Inauguration of a municipal energy efficiency office in Pazardjik 119. Inauguration of a municipal energy efficiency office in Berkovitza Municipality, 15 March 2000 Municipality, 10 October 2002 93. Inauguration of a municipal energy efficiency office in Montana 120. Inauguration of a municipal energy efficiency office in Aytos Municipality, 20 March 2000 Municipality, 25 October 2002 94. Inauguration of a municipal energy efficiency office in Sliven 121. Inauguration of a municipal energy efficiency office in Troyan Municipality, 1 June 2000 Municipality, 31 October 2002 95. Inauguration of a municipal energy efficiency office in Bourgas 122. Inauguration of a municipal energy efficiency office in Silistra Municipality, 2 June 2000 Municipality, 16 November 2002 96. Inauguration of a municipal energy efficiency office in Pernik Municipality, 19 June 2000 97. Inauguration of a municipal energy efficiency office in Omurtag Municipality, 11 July 2000 98. Inauguration of a municipal energy efficiency office in Razgrad Municipality, 12 July 2000 99. Inauguration of a municipal energy efficiency office in City of Dobrich Municipality, 12 July 2000 100. Inauguration of a municipal energy efficiency office in Varna Municipality, 14 July 2000 101. Inauguration of a municipal energy efficiency office in the City of Yambol Municipality, 24 October 2000

46 Energy Efficiency Demonstration Zone in the City of Gabrovo Annex 4 The executive team of the project "Energy Efficiency Strategy to Mitigate GHG Emissions. Energy Efficiency Demonstration Zone in the City of Gabrovo, Republic of Bulgaria", 1998-2004 PROJECT COORDINATORS

Dr. Zdravko Genchev, Architect, Kalinka Nakova, M.Sc. (Eng.), Executive Director of EnEffect, Co-ordinator of the Municipal Energy National Project Co-ordinator Efficiency Network Graduated from the Faculty on Architecture of the Higher Institute of Graduated from the Higher Institute of Architecture and Construction, Architecture and Construction. Specialization study tours on architec- subject field "Industrial and Civil Engineering". Previous employment: ture of residential buildings, housing policy and energy efficiency in designer at "Metalurgproject", the National Design and Programme Italy, Great Britain, Denmark, USA etc. Employment record: head of Fund with the Economic Association "Software Products and Systems". design and research teams, Editor-in-Chief of the Architecture Magazine Employed at EnEffect since 1996 as expert on communications and and Secretary of the Union of Architects in Bulgaria, Head of the information, and since 2001 as Co-ordinator of the Municipal Energy Housing Policy Department of the Ministry of Regional Development and Efficiency Network. Housing Policy, Director General of the National Centre for Regional Development and Housing Policy. Since 1993, Executive Director of the Center for Energy Efficiency EnEffect. More than 200 publications in national and foreign editions. Participation in international forums as lec- turer. Vice-Chairman of the Steering Committee of the UN ECE Project Dimitar Doukov, "Energy Efficiency 21". Financial Analyst Graduated from the University of National and World Economy, Sofia, subject field "Organisation of Production and Management in Industry" (1980). Previous employment at the Centre for Regional Development Valya Peeva, and Housing Policy, in missions abroad, and at the Foreign Investments Agency. Employed at EnEffect since 1998 as Financial Analyst. He is the Chief Programme Co-ordinator, author of important studies in the field of energy efficiency financing and Project Co-ordinator application of the Kyoto flexible mechanisms. Graduated from the Dimitar Blagoev Higher Institute of National Economy, Varna, subject field "Economics of Civil Engineering, Regional and Urban Planning and Development" (1975). Participation in numerous international courses and training programmes. Employment record: Ministry of Construction and Housing Policy, National Centre for Zoya Giurova, Regional Development and Housing Policy, since 1995 employed at Chief Secretary, EnEffect. In her capacity of Chief Programme Co-ordinator, she man- Co-ordinator of Training Activities aged the implementation of several important international projects. Graduated from the Sofia University "St. Kliment Ohridski", subject field "English Philology" (1965). Previous employment at the Research and Development Institute of Textile Industry, Central Design and Software Library. Since 1993 employed as Chief Secretary of the Center for Energy Efficiency EnEffect. Since 1998, assigned also the position of Dr. Georgui Chavdarov, M. Sc. (Eng.), Co-ordinator of Training Activities. Project manager (2003-2004) Co-ordinator on Capacity Building Activities Graduated from the Technical University of Sofia, subject field "Heating, Ventilation and Air Conditioning" (1988). In 1993 he defended a disser- Lubomir Tchervilov, M. Sc. (Eng.), tation in the same field. in parallel, he graduated from a post-graduate course on "International Economic Relations" at the University of Co-ordinator of the demonstration projects National and World Economy (1988). He has worked on different inter- in buildings national projects in Bulgaria and abroad and since 2003 he has joined Graduated from the Technical University of Sofia, subject field "Heating, EnEffect. Ventilation and Air Conditioning" (1989). Specialisation in Russia and Norway. Employed at EnEffect since 1996 as Co-ordinator of the demonstration projects in buildings. Member of ASHRAE and BULSHRAE. Numerous publications in EnEffect editions and other specialised Atanas Stoykov, M.Sc. (Eng.), editions. Co-ordinator of Demonstrations Co-ordinator of the demonstration project in Toplofikatsiya-Gabrovo Graduated from the Technical University of Sofia, subject field "Heating, Ventilation and Air Conditioning" (1988). Employment record: expert in Bilyana Chobanova, M. Sc. (Eng.), companies active in the field of HVAC engineering and distribution of Co-ordinator on Street Lighting their products. Since 1995, employed at EnEffect and currently working as Co-ordinator of Demonstrations. He is managing important interna- Graduated from the Technical University of Sofia, subject field tional projects in the field of district heating, climate change, etc. "Information and Measuring Equipment" (1995). Previous employment: Member of ASHRAE. Numerous publications in EnEffect editions and "Global Test" Ltd. and "Gastech-Bulgaria" JSC. Employed at EnEffect other specialized editions. since 2000 as Project Co-ordinator.

Energy Efficiency for Sustainable Development of Municipalities 47 ADMINISTRATIVE STAFF PROJECT PARTICIPANTS

Petar Todorov, Pavel Manchev, Business Manager Chief Programme Co-ordinator Graduated from the University for National and World Economy, Sofia, in Graduate from the Higher Institute of Economics "Karl Marx" in Sofia, 1995 with primary subject field "Economics and Organisation of Labour" subject field "Computerised Processing of Economic Information" and "International Economic Co-operation" as additional subject. (1978). Employment record: work in Bulgarian and foreign companies Pervious employment in the field of foreign trade, marketing and adver- active in the field of trade with computer hardware and software. tising and international transport. Employed at EnEffect since 1999 at Since 1995 working at EnEffect as expert on economics and financial the position of Business Manager. engineering. He is engaged in the sphere of foreign investments and development of energy efficiency projects, including in assistance to EcoEnergy member-municipalities in the working out of study and investment projects.

Evelina Todorova, Accountant Yonka Marinova, Architect Graduated from the University of National and World Economy, Sofia, Co-ordinator of the Municipal Energy subject field "Economics and Organisation of Labour" (1991). Previous Efficiency Network EcoEnergy employment as Accountant of the MGS Accounting House. Since 1999 (1998-2001) employed at EnEffect as Accountant. Graduated from the Higher Institute of Architecture and Construction, subject field "Architecture", and in 1974 graduated from the Sofia University "St. Kliment Ohridski" in the subject "Ecology and Vegetation Planning Activities in Urban Environment". Previous employment at Sofproject and the Ministry of Environment and Water as chief expert. Employed at EnEffect from 1998 until 2001 as Co-ordinator of the Damiana Petkova, Municipal Network for Energy Efficiency . Project Assistant Graduated from the Sofia University "St. Kliment Ohridski", subject field "Russian Philology" (1966). Previous employment at foreign trade enterprises, the Centre for Scientific and Technical Information on Architecture and Construction and at the National Centre for Regional Development and Housing Policy. Since 1998, she is responsible for the information sector of the Center for Energy Efficiency EnEffect and since Kamen Simeonov, M. Sc. (Eng.), 2001 she participates in the elaboration of the EcoEnergy Magazine and Co-ordinator on District Heating in other publications and works of EnEffect. Graduated from the Technical University of Sofia, subject field "Thermal Engineering" (1998). Employed at EnEffect since 2000 as expert, and since 2002 - as Project Co-ordinator.

Miroslava Irgeva, Secretary of the Project Graduated from the University of National and World Economy, subject Dimitar Marov, M. Sc. (Eng.) field "Marketing and Management" in 1999 with a B.A. degree on Co-ordinator of the demonstration project in "Marketing and Management" and in 2000 - M.Sc. in Economics. Toplofikatsiya-Gabrovo Employed at the Center for Energy Efficiency EnEffect since 1996. Since 1998, performs the function of Secretary of the GEF Project. He has graduated the Technical University of Sofia, subject field "Thermal Engineering". Employed at the Committee of Energy on energy efficiency matters. He has participated in EnEffect projects in industrial enterprises. Co-ordinator of the demonstration project in Toplofikatsiya (District Heating) Gabrovo.

Miroslava Petrova, Technical Assistant Graduated the Prof. V. Zlatarski 138th General Secondary School, English Division (1994). Employed at EnEffect since 1996 as technical assistant and secretary. Graduated a Business Course comprising type- writing, Business English, MS Excel etc.

48 Energy Efficiency Demonstration Zone in the City of Gabrovo EcoEnergy is a voluntary non-formal network of Bulgarian municipalities willing to improve the efficiency of fuel and energy end-use on their area. Founded in 1997 in Gabrovo, by 2004 the Network had a membership of 54 municipalities and 6 regional associations of municipalities or a total of 159 municipalities as regular and associated members

To contribute to promotion of energy efficiency as an integral part of the overall policy for sustainable development of each municipality To contribute to reduction of municipal budget energy costs and creation of conditions for utilization of the money saved for other priority activities in municipalities OBJECTIVES To encourage energy end-users in municipalities (households and business entities) to diminish their energy costs

Unification of the efforts for impact on the national energy policy and elaboration of proposals for institutional and legislative measures aimed at improvement of energy efficiency in municipalities Interaction in and support for identification and overcoming of the barriers to efficient PRIORITIES energy use in municipalities Identification of energy conservation opportunities in municipalities and assistance in the design of municipal energy efficiency programmes and projects Creation of institutional framework and local human potential for development and management of municipal energy efficiency projects Establishment and development of collaboration among member-municipalities to the benefit of exchange of knowledge and experience in the field of efficient use of fuels and energy Collection and dissemination of information about achievements in the field of cost- effective energy use and about new technologies, products and materials Energy efficiency for sustainable development

EcoEnergy maintains an information database on energy sources and energy consumption in Network member-municipalities. The information is used in the process of development of municipal energy efficiency strategies and programmes and for identification, design and implementation of specific investment projects. The DATABASE members of the Network set up specialized Municipal Energy Efficiency offices, which are the first steps towards the development of a modern institutional base of rational use of resources in Bulgarian municipalities

Secretariat: EnEffect, Center for Energy Efficiency - 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 Smirnenski Blvd. www.ecoenergy-bg.net Energy Efficiency Strategy to Mitigate GHG Emissions. Energy Efficiency Demonstration Zone in the city of Gabrovo

The project is financed by the Global Environment Facility through the UNDP.It aims at dissemination among Bulgarian municipalities of policies and practices that can assist them to overcome successfully the barriers to energy efficiency improvement and reduction of GHG The Global Environment Facility (GEF) is a financing emissions and other environmental mechanism. It is structured as a trust fund, operating polluters. in collaboration and partnership with its three executive agencies - the United Nations Development The project comprises two major Programme (UNDP), the United Nations components: Environmental Programme (UNEP) and the World Bank, with the aim to achieve global environmental Local capacity building in Bulgarian benefits. municipalities in the field of energy efficiency; Supporting demonstration projects in typical energy end-user municipal sites. The activities incorporated in the first project component are its core. They comprise introduction of energy efficiency management in municipalities, training of local decision-makers and experts and introduction of financial tools and mechanisms for implementation of energy The United Nations Development Programme efficiency projects. (UNDP) is the UN global network for introducing The demonstrations under the second change and facilitating the exchange of knowledge, project component aim at supporting the experiences and resources among the states with development of local institutional and human the aim to help people build a better life. UNDP is capacity and consolidating its importance for present in 166 states and works jointly with them for and impact on the municipal policy.They resolution of global issues and the national problems comprise representative projects in the field they stumble upon. Until they develop their own local capacity they may draw on the experience of UNDP of street lighting, district heating and and its numerous partners. buildings. The demonstration projects illustrate how the local institutions and the UNDP/GEF support environmental projects in the newly acquired knowledge and skills might field of biodiversity, climate change, international be applied under real conditions. waters, depletion of the ozone layer in the atmos- phere, durable organic polluters and soil erosion. The activities under the two project components are concentrated in Gabrovo. This municipality acts as a specific laboratory in which different management and technical approaches and solutions are elaborated and tested. In fact, the impact of the project is spread among all the municipalities- Publication of EnEffect members of the Municipal Energy Efficiency www.eneffect.bg Network EcoEnergy and in a number of For contacts: cases even beyond its boundaries. The 1606 Sofia, POBox 85 number of municipalities influenced by the E-mail: experience of the Energy Efficiency [email protected] Tel.: +359 2 963 17 14, Fax: +359 2 963 25 74 Demonstration Zone in the city of Gabrovo Translator: Anna Dourcheva provides grounds to consider that the Corrector: Nadya Mihaylova reforms in the field of sustainable Desk top publishing: SolAir Ltd. management of natural resources are Press Product Line Ltd., welcome throughout the country. Print: Press Product Line Ltd.