The Bulgarian government undertook and is undertaking several critical activities to combat energy waste. Nevertheless, energy consumption per unit of GDP remains well above the average for EU states.
Small sustainable energy investments including both energy efficiency and renewable energy projects will help reduce Bulgaria’s energy intensity. However, sustainable energy projects are often hampered by market imperfections, such as the lack of quality energy audits, and access to capital.
The BEERECL was established to support industrial energy efficiency and small renewable projects in the private sector. From April 2004 to January 2014 BEERECL offered energy audits, business plan assistance and financing.
As of January 2014, participating banks approved 286 sustainable energy projects. Loans of 150 million EUR were disbursed with incentive grants paid to project developers of 24 million EUR. These projects reduced Bulgaria’s CO2 emissions by over 710 Mt CO2 eq. per year. The projects replaced 1,08 GWh of electrical generation per year from the Kozloduy Nuclear Power Plant, enough to cover the electricity consumption of about 370,000 homes.
BEERECL on-lent, through Bulgarian Commercial Banks that participated in the credit line, to private industrial companies in Bulgaria. Allianz Bank Bulgaria, DSK Bank, Eurobank Bulgaria, Piraeus Bank Bulgaria, Raiffeisenbank (Bulgaria), UniCredit Bulbank, Unionbank and United Bulgarian Bank had agreements with EBRD to participate in BEERECL. Most banks fully utilized their funds.
The KIDSF focuses its international support on essential investment projects within Bulgaria’s energy sector. These investments help achieve the country’s strategic energy objectives, as outlined in the 2003 Bulgarian Energy Law, e.g., securing supplies, guaranteeing nuclear safety and improving energy efficiency.
The KIDSF Incentive Grants provided: a completion fee to borrowers of up to 20% of the BEERECL loan amount. The KIDSF funds also supported the energy consulting services to borrowers.
The BEERECL closed in January 2014.