Energy policies for promoting the development of renewable energy

and energy efficiency

Detelina Hadjieva, Chief Auditor

Eva Galabinova, Chief Auditor

Issues related to Bulgaria's priorities for sustainable energy development are explored within the following audits:

1. Price regulation and control of compliance undertaken by the Energy and Water Regulatory Commission concerning heat, electricity, water and gas for the period 01.01.2007 - 30.04.2013;

2. Audit on "Sofia District Heating" activities for the period 01.01.2007 - 30.04.2013;

3. The control exercised by the Ministry of Energy in respect of the metering and cost allocation of heat consumption for the period 01.01.2007 - 30.04.2013.

Audit Objectives

Assessment of the actions taken, introduced mechanisms and incentives to encourage the use of RES savings and energy security in the implementation of national and EU goals in the field of RES and implemented regulatory and control functions to assess obstacles.

Audit reports were adopted by the BNAO on 12.09.2013

Audit questions

These audits examined issues related to:

- government policy to encourage the production of renewable energy;

- high-efficient co-generation of heat and electricity;

- metering and cost allocation of heat consumption as a mechanism for energy savings and use of the most economically advantageous heat.

Audit methods

Information gathering methods:

1. Study and analysis of documents;

2. Questionnaires and interviews;

3. Round Table;

4. External experts;

5. Non-statistical sampling.

Data analysis methods:

1. Data summarizing;

2. Qualitative, quantitative and comparative analysis.

Main conclusions 1

- National policy for sustainable development is aimed at more efficient use of energy from renewable sources;

- Feed-in tariffs for renewable energy; - Lack of harmonious development of energy sources; - The price of electricity is growing steadily; - Obstacle to free competition within the internal market.

Main conclusions 2

- The Energy Strategy of Bulgaria by 2020 sets as a priority the preservation and development of district heating;

- Promotion of highly efficient combined heat and electricity production, focusing on the use of RES;

- Regardless of the measures for promotion of the cogeneration electricity production, the heating companies realized losses.

Performance of the EU and national objectives in the production and consumption of biofuels

for the period 01.01.2008 - 31.12.2012

The draft report is currently in procedure for adoption by the BNAO.

Main question:

Are the European Union objectives and the national ones in the production and use of biofuels achieved?

Main conclusions

- The Law on renewable energy specifies objectives for biofuels;

- The production of energy crops hasn’t been encouraged since 2010;

- Mandatory supply of conventional fuels containing a certain amount of bio-component is not a sufficient tool;

- Lack of coordination between responsible institutions in the field of biofuels;

- No funds for the replacement of conventional fuels in the public transport with biofuels;

- The municipalities have not planned measures to use biofuels;

- Need of integrated monitoring system;

- Absence of a national certification system for economic operators.

Performance audit on energy efficiency projects in residential buildings in Bulgaria in the period 2012 - 2015

The audit is in progress.

Main question:

Is the implementation of the projects for energy efficiency of residential buildings in Bulgaria in the period 2012 – 2015 effective?

Audit is focused on three specific issues:

- Prerequisites for the implementation of energy efficiency projects;

- Projects’ objective achievement;

- Effectiveness of monitoring and control over the implementation of the projects.

Lessons learned

1. Discussing issues with a wide range of stakeholders.

2. Comparing the views of different actors on the energy market.

3. Seeking expertise at different levels and at all stages of the audit.

4. Assessing the progress in the objectives achievement for the production of renewable energy before the deadline in 2020.

5. The audits in this area need more time due to energy sector specifics.

Thank you for the attention!