Bulgaria—Energy Efficiency and Renewable Energy Credit Line Support – Rational Energy Utilisation and Financing Plans

Client: European Bank for Reconstruction and Development

Duration: 2004-2007

Region: Eastern Europe and Central Asia

Country: Bulgaria

Solutions: Economic Growth

In partnership with Encon Services, DAI implemented a European Bank for Reconstruction and Development-funded project intended to develop Rational Energy Utilization Plans with small and medium-sized enterprises (SMEs) in Bulgaria. The project was part of a European Union initiative to support Bulgaria’s Energy Law and assist with the closure of the oldest first-generation Soviet-designed blocks of the Kozloduy Nuclear Plant. The Bulgarian economy stands out as one of the most energy-intensive in Europe. A core aim of this project was to develop adequate bank financing services directed at industrial customers for use in energy-efficiency projects. The DAI team worked with participating banks to develop streamlined procedures for customer/project identification and to enhance their due diligence and risk mitigation capabilities. DAI also worked with participating banks to market the project to increase branch participation in energy financing and attract new clients. Finally, DAI and Encon consultants worked with SMEs to develop bankable energy efficiency proposals for the participating banks to evaluate with a view to financing.

Sample Activities

  • Streamline customer/project identification procedures for banks in the program.
  • Assist banks in marketing energy financing products.
  • Support energy-efficiency project proposals.

Select Results

  • Under the facility more than €150 million in loans were provided to private businesses for nearly 300 projects which involved about €230 million investment costs.
  • Investments under the framework have led to savings of 1 terawatt hours per year and carbon emission reductions of 710,000 tons per annum—equal to the combined household electricity consumption of 890,000 people or the residential electricity consumption of the Bulgarian cities like Plovdiv, Varna and Burgas combined.
  • The estimated carbon emission reductions are equivalent to taking 390,000 cars off the road.
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