LESSONS LEARNT FROM EBRD ENERGY EFFICIENCY …

CHOOSE EXPERTS, FIND PARTNERS

PUBLIC

LESSONS LEARNT FROM EBRD ENERGY EFFICIENCY

PROGRAMMES IN ROMANIA 12th WEC CENTRAL & EASTERN EUROPE REGIONAL ENERGY FORUM

- FOREN 2014 - EE

Daniela Scripcariu – CEO Daniela Leonte – Director EE

Bogdan Anton – Project manager

PUBLIC

• Legal and regulatory context

• Main barriers in energy efficiency

• Energy efficiency measures - examples

• EBRD Energy Efficiency Programmes

• Relevant EBRD Energy Efficiency Projects in Romania

• Examples of Energy Efficiency Projects in Romania

TABLE OF CONTENT

22-26 June 14 2 Lessons learnt on EE

PUBLIC

LEGAL AND REGULATORY CONTEXT

• EU Directives 2006/32/CE and 2012/27/EU on Energy Efficiency – Define and recommend the use of EE/ESCO/EnPC, financial instruments for energy

efficiency (EE)

– Provide common framework of measures for the promotion of EE within the EU in order to ensure the achievement of the Union’s 2020 – 20% headline target on energy efficiency

– Member States are required to promote and support the proper functioning of the energy services market

– Member States should take appropriate measures to remove regulatory and non-regulatory barriers to energy efficiency


PUBLIC


• Partnership Agreement and EU position in the Cohesion Policy 2014-2020 ‒ High priority to EE projects

• Relevant EU documents/studies:

‒ Guidance on EE in Public Buildings (EPEC)

‒ European Commission's Report to the EU Parliament and Council - Financial Support

for EE in buildings (18/04/2013);

‒ EC’s Report/JRC – Financing the EE (May 2010)

‒ Energy Charter Protocol – EE in Public Buildings

‒ European Court of Auditors’ Report – Cost-Effectiveness of Cohesion Policy investments in EE


PUBLIC


• Romanian environment – GD no.22/2008 on energy efficiency and promoting of renewable sources to the end users

– Law no. 220/2008 for the establishment of the system for promoting the production of energy from renewable energy resources, with the subsequent amendments and completions

– Law no. 123/2012 on electricity and natural gas

– GEO no. 124/2001 on the establishment, organization and functioning of the Romanian Energy Efficiency Fun

– Law no. 372/2005 on energy performance of the buildings

– The new National Energy Efficiency Action Plan (PNAEE)

– ANRE Order 97/2013 –Approval of the rules regarding the electricity acquisition for covering the self-consumption related to the electricity networks

– ANRE Order 15/2014 – Approval of the procedure for determining the self-consumption in the electricity distribution networks

– New Law on energy efficiency – proposal under discussions – pending for approval


PUBLIC

MAIN BARRIERS IN ENERGY EFFICIENCY

• ………

• Lack of information/education on energy efficiency

• Lack of motivation/focus (energy is not the core business, for most of energy users)

• Low appetite of lenders for energy efficiency (the payback of the investment and the profit are obtained by reducing the energy consumption, not by increasing the revenues)

• Sometimes, legal / regulatory/ policy barriers

• Technology barriers

• ……


PUBLIC

…BUT SUSTAINABILITY ATTAINED


Business Benefits Improved operational efficiency Preserve licence to operate

Enhanced brand and reputation Promoting and increasing innovation

Customer attraction and retention Improved access to capital

Enhance human and intellectual capital

Building and sustaining shareholder value

Attracting and retaining talented staff

Identification of new opportunities

Improving risk management Generating increased revenues

PUBLIC

ENERGY EFFICIENCY MEASURES - EXAMPLES • Replacement of existing boilers with more efficient ones / rehabilitation fuel

switching • Rehabilitation of heat distribution systems including implementation of heat

control and measurement measures • Replacement of oversized electrical motors, installation of Variable Speed

Drives on electric motors (pumps, fans, drives) • Rehabilitation of power distribution systems (e.g., replacement of old or

oversized transformers, installation of capacitors to reduce reactive power consumption, etc.)

• Implementation of Energy Management Systems • Rehabilitation of street lighting (only measures relevant to improvement of

energy efficiency) • On site co-generation of heat and electricity (all heat and electricity shall be

used on-site) • Insulation of buildings, replacement of windows, etc.


PUBLIC

EBRD ENERGY EFFICIENCY PROGRAMMES

9

• EBRD has operated in the energy sector since 2006, during which period it has invested € 8.6 billion in 172 projects in 28 countries of operations

(source: EBRD Energy Strategy; www.ebrd.com)

• The EBRD’s Sustainable Energy Initiative (SEI) brings together investments, technical cooperation and policy dialogue to increase energy efficiency and promote renewable energy

• The Bank's sustainable energy financing includes investments in various renewable energy technologies, as well as investments in energy efficiency: ‒ upgrades and rehabilitation of power generation assets, support for loss reduction projects

in T&D systems, grid enhancements to facilitate renewables, gas flaring reduction projects, coal waste recycling projects and investments in the efficient assets, efficient end-uses, etc.


PUBLIC


10

• Energy sector projects and cumulative financing under the SEI

(source: EBRD Energy Strategy- www.ebrd.com)

• The sustainable energy investments: ‒ from 10 projects for € 400 mil./yr in 2006 to 24 projects for over € 880 mil./yr in 2012


http://www.ebrd.com/

PUBLIC


11

• Objective: implementation of sustainable projects (environmentally and socially sound) through investments in energy efficiency

– maximize energy savings (CO2 emission reductions) – improve productivity and increase profits

• Scope: – EE for end-users: commercial sector, services, industry, residential – Small scale renewable energy: wind farms, run-of-river hydro plants, solar systems to provide hot water for

heating, biomass, gas engines using biogas, geothermal heat supply

• Perimeter of application: all countries of operation, with initial focus in South-East Europe of 514 million €

• Values up to end 2013: 2 Billion € (55,000 clients in 20 countries) • Concept:

– Credit lines to local financial institutions for lending in energy efficiency to their clients – Consultancy - Expert guidance to build capacity in appraising the financial and technical potential of

investments for the Financial institutions and Clients (supporting in identification of eligible projects, support for financing application, marketing the benefits of the finance programme, training, etc.)

– Verification – Grant included


PUBLIC


12

• EBRD is involved in EEFF and SEFF programmes in: Europe Middle East Central Asia


PUBLIC

RELEVANT EBRD PROJECTS IN ROMANIA 1/2 > On going Energy Efficiency financing support

‒EU EBRD Romania SME Sustainable Energy Finance Facility for SMEs (RoSEFF) (www.seff.ro) : 60 mil. Euro

‒EU EBRD Energy Efficiency Finance Facility for industrial end users (EEFF) (www.eeff.ro): 80 mil. Euro

‒EU EBRD Municipal Finance Facility – Energy Efficiency (MFFEE): 10 mil. Euro


http://www.seff.ro/

http://www.eeff.ro/

PUBLIC

• Consultancy for ROSEFF, EEFF, MFFEE

• Consultancy support for energy services market – EU EBRD Technical assistance for ESCO market development

• Consultancy support for Energy Efficiency in the Romanian Residential Sector

• Consultancy support for Energy Efficiency in the Romanian Public Sector

RELEVANT EBRD PROJECTS IN ROMANIA 2/2 > On going Consultancy support


PUBLIC

Scope: support the preparation, successful operation, administration and monitoring of the Facility by providing technical, marketing and administration services

TRACTEBEL ENGINEERING MISSION

- Consultancy for industrial customers & participating Banks

• Customers’ projects identification and assessment • Preparation of bankable technical studies • Trainings

- Consultancy to EBRD • Project management of the facilities • Marketing of the facilities

EXAMPLES OF EE PROJECTS IN ROMANIA 1/7 Consultancy for EE Financing


PUBLIC

– EU EBRD Romania SME Sustainable Energy Finance Facility

(www.seff.ro) - for SMEs, owners associations, ESCOs • 51 Studies prepared by Tractebel Engineering, support investments of € 17.8 mil., with

potential sub-loans of € 14.4 mil.

• 35 Approved Credits for sustainable energy, total value of € 10.5 mil.

(investments value – from € 40,000 up to € 700,000)

–EU EBRD Energy Efficiency Finance Facility (www.eeff.ro) - for industrial, commercial end users and small scale renewable projects • 154 Studies prepared by Tractebel Engineering, which support

investments of €149 mil, with potential loans of € 103 mil.

• 115 Approved Credits for energy efficiency … total value of €68 mil., from

a large range of industrial sectors... metallurgy, furniture, sugar, textiles,

metals, cables, machinery, plastics, food ....

EXAMPLES – EE PROJECTS IN ROMANIA 2/7 Results of Consultancy support for EE financing


http://www.seff.ro/

http://www.eeff.ro/

PUBLIC

EXAMPLES – EE PROJECTS IN ROMANIA 3/7


PUBLIC

Doosan IMGB - the largest forging and casting company in Romania

• Improving energy efficiency by replacing the existing steam plant, installation of an Energy Management System and rehabilitation of three furnaces

• Total energy consumption reduction: 39 GWh/year (20%)

• GHG emissions reduction: 12,135 tCO2e/year

• Finance: based on EU/EBRD EEFF, with a sub-loan of 2,500,000 €

Sam Mills/SE-GES - the leader on the corn products market in Romania and one of the biggest maize producers in Europe

• Improving energy efficiency by installing a Jenbacher cogeneration unit of 1.72 MWe

• Energy savings: more than 19 GWh/year (32%)

• Emissions reductions: 3,145 tCO2e/year

• Finance: based on EU/EBRD EEFF, with a sub-loan of 2,500,000 €



PUBLIC

Comalat - produces and markets milk, sour cream, cheese and yoghurt using traditional Romanian recipes

• Improving energy efficiency by installing a biogas boiler, an absorption chiller and heat recovery from combustion gases

• Total energy consumption reduction: 886 MWh/year (26%)

• GHG emissions reduction: 186 tCO2e/year

• Finance: based on EU/EBRD EEFF, with a sub-loan of 257,900 €

Sterk Plast - manufactures more than 200 household plastic products

• Improving energy efficiency by replacing the plastic injection molding machines and extrusion blow molding machines

• Energy savings: about 2.9 MWh/year (49%)

• Emissions reduction: 1,500 tCO2e/year

• Financed using EU/EBRD EEFF with a sub-loan of 345,000 €



PUBLIC

Uzinsider General Contractor - engineering company that delivers turnkey installations

• Construction of MHPP in Alba County, with 2 x Kaplan Horizontal turbines of 1,236 kW each

• Financed using EU EBRD RoSEFF with a sub-loan of 900,000 €

Saucolemn - wood processing company with a ‘from the tree to product’ approach

• Implemented a cogeneration system that uses wood-waste from the manufacturing processes to create heat and power for its operational needs, producing around 21,600 MWh per year:

• 82% in the form of heat for wood steaming and drying

• 18% is electricity, for Saucolemn’s own needs of 1 560 MWh/year and surplus to sell through the grid

• Financed using EU EBRD RoSEFF with a sub-loan of 778,322 €



PUBLIC

• Consultancy for Municipal Finance Facility – Energy Efficiency (MFFEE) ‒ Consultancy for financing Energy Efficiency and Renewable Energy investment in

public buildings and public infrastructure

‒ Example: Consultancy support for EE financing for Bucharest municipality and Luxten: "The modernization and optimization of technical and functional parameters of the public lighting system of Dorobanti area, Bucharest”: – investment of € 4.9 million – 106,846 kWh energy saving (38%) – 70 tCO2 emissions saving per year



PUBLIC

Thank you for the attention!

www.tractebel-engineering-gdfsuez.com


Documents

LESSONS LEARNT FROM EBRD ENERGY EFFICIENCY …