financing energy efficiency projects for smes ministry of economy and energy
DESCRIPTION
European Regional Development Fund EUROPEAN UNION Investing in your future. Operational programme "Development of the Competitiveness of the Bulgarian Economy" 2007-2013. FINANCING ENERGY EFFICIENCY PROJECTS FOR SMEs Ministry of Economy and Energy Managing Authority of OP "Competitiveness". - PowerPoint PPT PresentationTRANSCRIPT
FINANCING ENERGY EFFICIENCY
PROJECTS FOR SMEs
Ministry of Economy and Energy
Managing Authority of OP "Competitiveness"
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
25 % improvement in energy efficiency compared to 2005 levels
• 50% decrease in energy intensity
16 % share of energy consumption produced from renewable sources
20 % reduction in greenhouse gas emissions from 1990 levels
High potential for energy efficiency improvement identified in:
•energy production / transmission / distribution
•final energy consumption: residential sector, transport, industry and services
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Bulgarian Energy Strategy 2020
Bulgaria 2020 targets
Energy Intensity in selected EU Countries[kgOe/1,000 €]
Bulgaria has highest rate within EU-27
•Disadvantage for Bulgarian SMEs
•Lack of competitiveness
•High expenses for energy services0,00
200,00
400,00
600,00
800,00
1.000,00
1.200,00
1.400,00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
EU - 27 Bulgaria Germany Greece Hungary
Austria Romania Croatia
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Operational programme "Development of the
Competitiveness of the Bulgarian Economy"
2007 – 2013
Energy Efficiency and Green Economy
Programme
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Framework
• Joint Initiative between MoEE and EBRD
• Promotion of Sustainable Energy Solutions for SMEs
• Blending of EU Structural Funds and Commercial Lending in one Procedure
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Components
• Grant Component: EUR 150 Mio.
• Loan Component: EUR 150 Mio.
• Technical Assistance Component
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Eligible Applicants and Projects
Only SMEs are eligible
Maximum of 250 employees, turnover of max. EUR 50 Mio. and/or total assets of max. EUR 45 Mio. (according to EU definition / Bulgarian Law on SMEs)
Energy Efficiency Projects
Projects which result in a reduction of energy (and/or fuel consumption) against a baseline or per unit of production
Energy-Audit Projects must achieve a minimum of 10% energy savings!
Renewable Energy Projects
Projects which generate energy only for the own use of enterprises (solar thermal, geothermal and heat pumps)
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Implementation Approaches
There are two different approaches:
Technology-driven Approach: Small-scale projects specified in the „List of Eligible Material and Equipment“
Energy-Audit Approach: For larger and more complex projects, based on the results of a simplified Energy Audit
Technology-driven Approach
Energy Audit Approach
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Grant Funding
• Maximum grant intensity is 50% of eligible costs
• Maximum grant amount per project under „Regional Aid“ scheme is EUR 1 Mio.
Project Type Grant Intensity (% of total eligible costs)
Technology Driven Projects (LEME) 30%
Energy Audit Driven Projects 40%
Bonus grant for the following features: LEME projects based on a voluntary energy audit Projects involving CHP Renewable energy projects covering the own needs of the enterprise Fuel switch projects Introduction of an Energy Management System Projects implemented in priority economic sector
10% (for each feature)
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Functions Allocation
Project Assistant Participating banks
Contracting Authority
Verification Assistant
Financial Eligibility Check
• Financing with own funds: Confirmation of availability of sufficient funds
• Loan financing: Loan approval or Term Sheet
PBs provide loans to applicants/beneficiaries at market rates
Technical Eligibility Check
•Project eligibility
•Eligibility of expenditures
•Energy audit check
Procurement Check
Information and counseling services to applicants
Eligibility of Applicant Check
State Aid Compliance
Double Financing Check
Project Monitoring
Verification of products and services delivered
•On-the-spot visit
•Final report Check
LEME maintenance
Project Cycle
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
State of implementation
• Initial project preparation completed: 750+ projects, well above programme budget
• Submission mostly in the last two months before programme closure
• Preference for Energy Audit Projects – scale and flexibility
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Operational Progamme
„Innovations and Competitiveness“
2014-2020
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Programming framework
Priorities for funding recommended by European
Commission Services
2. Innovation-friendly business environment
Supporting business developmentFacilitating access to finance and advanced business services for SMEs and start-upsSupporting private R&I investment, infrastructure and capacities
4. Environment-friendly and resource-efficient economy
Promoting a low-carbon economy, energy efficiency and renewable energy sources
OP „Innovations and Competitiveness “
PRIORITY AXIS 1: „Entrepreneurship, export and production potential“1.1. Technological development and innovations1.2. Competitiveness and productivity of enterprises
PRIORITY AXIS 2: „Green and effective economy“
2.1. Green economy and resource efficiency
2.2. Energy technologies and energy efficiency
PRIORITY AXIS 3:
„Technical assistance“
Common Strategic Framework for the period
2014-2020
Thematic objective 1. Strengthening research, technological development and innovation
Thematic objective 3. Enhancing the competitiveness of SMEs
Thematic objective 4. Supporting the shift towards a low-carbon economy
Thematic objective 6. Protecting the environment and promoting resource efficiency
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Priority axis 1: Entrepreneurship, export and production potential
Technological development and innovations - „smart“ growth (TO 1 of the CSF)development and embedding of new products, processes and business models in innovative enterprisesdevelopment of mutual initiatives for researches and innovationssupport for innovative starting enterprisesdevelopment of infrastructure for innovations and researches, etc.
Competitiveness and productivity of enterprises - fast growing (TO 3 of CSF)renovation and excellence of technologies aiming to improve productivity and increasing efficiency of resources used through introduction of leading technological solutionsintroduction of new ICT-based services and applicationsimprovement of manufacturing processes in enterprisessupport for development of clusterssupport for fast growing enterprises, etc.
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
Priority axis 2: Green and effective economy
Green economy and resource efficiency – sustainable growth (TO 6 of the CSF)embedding of high-technology solutions for optimization of production processes and reduction of utilization of raw materialsembedding of contemporary technologies for input of wastes as raw material in new production; wasteless technologies; innovation production materials; technologies for production of "green products“, etc.
Energy technologies and energy efficiency - sustainable growth (TO 4 of the CSF)investments in technology solutions for optimization of production processes resulting in energy savings investments in renewable energy technologies for energy production, incl. CHP consultancy services for energy management systems developmentconstruction and repair works in buildings
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013
THANKTHANK YOU FOR YOUR ATTENTION!YOU FOR YOUR ATTENTION!
European Regional Development FundEUROPEAN UNIONInvesting in your future
Operational programme "Development of the Competitiveness of the Bulgarian
Economy" 2007-2013