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Republic of Bulgaria REPUBLIC OF BULGARIA Ministry of Economy and Energy METHODOLOGY FOR THE OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES Sofia 5 December 2013 REPUBLIC OF BULGARIA MINISTRY OF ECONOMY AND ENERGY The methodology for the operation of the energy efficiency obligation schemes has been developed in accordance with the requirements of Article 7 of Directive 2012/27/EU on energy efficiency. This national methodology has been drawn up in line with the framework provided in paragraph 4 of Annex V to the Directive. This methodology was developed by a team of experts from Bulgaria’s Ministry of Energy and Economy and the Sustainable Energy Development Agency. METHODOLOGY FOR THE OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES 2/24 REPUBLIC OF BULGARIA MINISTRY OF ECONOMY AND ENERGY TABLE OF CONTENTS 1. OBLIGATED, PARTICIPATING OR ENTRUSTED PARTIES OR IMPLEMENTING PUBLIC AUTHORITIES ........................................................................................................................................... 4 2. TARGET SECTORS ................................................................................................................................... 5 3. THE LEVEL OF THE ENERGY-SAVING TARGET OR EXPECTED SAVINGS DURING THE WHOLE OR INTERMEDIATE PERIODS ............................................................................................. 6 4. THE DURATION OF THE OBLIGATION PERIOD AND INTERMEDIATE PERIODS ................ 7 5. ELIGIBLE MEASURE CATEGORIES ................................................................................................... 8 6. CALCULATION METHODOLOGY, INCLUDING HOW ADDITIONALITY AND MATERIALITY ARE TO BE DETERMINED AND WHICH METHODOLOGIES AND BENCHMARKS ARE USED FOR ENGINEERING ESTIMATES ...................................................... 9 7. LIFETIMES OF MEASURES ................................................................................................................. 11 8. APPROACH TAKEN TO ADDRESS CLIMATIC VARIATIONS WITHIN THE MEMBER STATE ........................................................................................................................................................ 15 9. QUALITY STANDARDS ......................................................................................................................... 19 10. AUDIT PROTOCOLS .............................................................................................................................. 20 11. HOW THE NEED TO FULFIL THE REQUIREMENT IN THE SECOND SUBPARAGRAPH OF ARTICLE 7(1) IS TAKEN INTO ACCOUNT ....................................................................................... 23 ANNEX: LIST OF REGULATORY DOCUMENTS ...................................................................................... 24 METHODOLOGY FOR THE OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES 3/24 REPUBLIC OF BULGARIA MINISTRY OF ECONOMY AND ENERGY 1. Obligated, participating or entrusted parties or implementing public authorities When designating the obligated parties, Bulgaria considers it necessary to include all energy distributors and/or retail energy sales companies, including transport fuel distributors and transport fuel retailers. Obligated parties shall be energy traders that meet one or more of the following conditions: 1. Sales of energy to final customers in the previous calendar year that were greater than the equivalent of 75 GWh (6.45 ktoe) annually, including: • Electricity companies selling electricity to final customers in amounts exceeding 75 GWh on an annual basis; • Heat transmission companies selling heating to final customers in amounts exceeding 75 GWh on an annual basis; • Natural gas traders selling more than 8 million normal cubic meters on an annual basis to final customers; • Liquid fuel traders selling liquid fuels to final customers in amounts exceeding 6 500 tonnes on an annual basis, excluding fuels for transport purposes; • Solid fuel traders selling to solid fuels to final customers in amounts exceeding 13 000 tonnes on an annual basis; 2. A minimum of 10 members of staff in the previous year, irrespective of the amount of energy traded; 3. Annual turnover or end-of-year balance for the previous year of more than BGN 3.9 million, irrespective of the amount of energy traded. Bulgaria does not intend to include transport fuel distributors or retailers in the obligation scheme. METHODOLOGY FOR THE OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES 4/24 REPUBLIC OF BULGARIA MINISTRY OF ECONOMY AND ENERGY 2. Target sectors In order to reach their individual targets, the obligated parties may implement energy-saving measures in all final customer sectors — industry, transport, households, commerce, civil society organisations, agriculture, forestry and fishery, services, etc. The obligated parties may implement measures that achieve energy savings in the energy transformation, distribution and transmission sectors, including by means of efficient district heating and cooling systems infrastructure. METHODOLOGY FOR THE OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES 5/24 REPUBLIC OF BULGARIA MINISTRY OF ECONOMY AND ENERGY 3. The level of the energy-saving target or expected savings during the whole or intermediate periods In accordance with Article 7 of Directive 2012/27/EU, Table 1 shows the energy sales to final customers (equivalent to final energy consumption (FEC)) in the three-year period from 2010 to 2012, based on the available data from the National Statistical Institute, and the average sales levels in the same period, excluding all sales to the transport sector. Table 1. Average energy sales to final users in the period 2010-2012, ktoe Indicator 2010 2011 2012 Average FEC excl. transport 5 990 6 337 6 173 6 167 In the period 2014-2020, the minimum combined amount of energy savings achieved by all energy traders must include new energy savings equal to 1.5 % of the annual amount of energy sold to all final customers. The obligations calculated for each year, both with and without full use of the 25 % reduction permitted by Article 7(2), are given in Table 2. Table 2. Breakdown of the obligation scheme by year (2014-2020), ktoe Year Obligations excl. transport Obligations excl. transport and with full use of the 25 % reduction permitted by Article 7(2) 2014 92.50 69.38 2015 185.00 138.75 2016 277.50 208.13 2017 370.00 277.50 2018 462.50 346.88 2019 555.00 416.25 2020 647.50 485.63 As shown in the third column of the table, Bulgaria intends to make full use of the 25 % reduction permitted by Article 7(2). METHODOLOGY FOR THE OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES 6/24 REPUBLIC OF BULGARIA MINISTRY OF ECONOMY AND ENERGY 4. The duration of the obligation period and intermediate periods In accordance with the requirements of Article 24(2) of Directive 2012/27/EU on energy efficiency, by 30 April 2014, and every three years thereafter, Member States shall submit National Energy Efficiency Action Plans. We therefore consider it appropriate to phase in the obligation periods according to the following timetable: 1. First period: 2014-2016; 2. Second period: 2017-2019; 3. Third period: 2020. METHODOLOGY FOR THE OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES 7/24 REPUBLIC OF BULGARIA MINISTRY OF ECONOMY AND ENERGY 5. Eligible measure categories The eligible measures to increase energy efficiency must satisfy the following conditions: 1. Their payback time must not be longer than the lifetime of the corresponding measures; 2. They must save primary energy resources; 3. They must reduce greenhouse gas emissions; 4. They must not damage the quality of the environment; 5. They must not damage sanitary and hygiene elements. In order to reach their targets, the obligated parties may implement horizontal measures aimed at increasing the energy efficiency of final customers, such as awareness and promotional campaigns. They may also pay contributions to the Energy Efficiency and Renewable Sources Fund or other specialised funds, programmes, measures, schemes and mechanisms used to finance measures to increase the energy efficiency of final customers, including agreements concluded with beneficiaries. METHODOLOGY FOR THE OPERATION OF THE ENERGY EFFICIENCY OBLIGATION SCHEMES 8/24 REPUBLIC OF BULGARIA MINISTRY OF ECONOMY AND ENERGY 6. Calculation methodology, including how additionality and materiality are to be determined and which methodologies and benchmarks are used for engineering estimates In 2012, 11 energy-saving assessment methodologies were drawn up and adopted. Each of these was based on the principle of enabling the energy savings to be measured and/or estimated before and after the implementation of the energy efficiency measure concerned. It is also possible to adjust and standardise the results in order to accommodate the effect of internal or external conditions that may influence energy consumption. These encompass the likely impact of one or more probable factors, such as weather conditions, heating or air conditioning, type of equipment used, etc. The specific methodologies are used to assess the amount of energy saved as a result of the implementation of specific energy efficiency measures. They include a mechanism to allocate energy savings to each year of the lifetime of the measure concerned. The specific methodologies are based on: 1. Measurements, including a definition of: a) Measurement points and intervals, types of measuring devices, measurement reports; b) Measurement methods, techniques and
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