Bulgaria will implement measures to boost energy efficiency in more than 3000 state and municipal building. This became clear on March 23 after Roumen Ovcharov, economy and energy minister, presented the Concrete Measures Energy Efficiency Programme at an energy efficiency forum held in Sofia.

According to Ovcharov’s plan, the measures will be implemented in three aspects - replacement of wood doors; thermal insulation and window framing; and new streetlights. Ovcharov estimated the money needed for the measures at 208 million euro. The measures are expected to save two billion kilowatt-hours of electricity every year.

His ministry will draw up a list of buildings needing the most urgent energy efficiency measures.

At the forum, Ovcharov told reporters that discussions had been held with bank institutions operating in the Bulgarian market that wanted to participate in the project by providing credit to companies that will carry out the works under privileged conditions. To obtain these credits, the municipalities had to sign contracts with energy services companies (ESCOs) that will fund and implement the energy efficiency measures.

Under the ministry forecast, the return on the investment in streetlight upgrades is two years and the return on the investment in wooden door and window framing and thermal insulation is three years After the implementation of the energy efficiency measures, 80 per cent of the resulting savings is expected to be returned to the ESCOs. Ten per cent is expected to remain with the municipalities, and the remaining 10 per cent would go to the state budget.

According to specialists’ appraisals, the return on investment for the replacement of street lighting will be two years, while for heat insulations and joinery replacement it will come to three years.

At the forum, Ovcharov spoke about the recent privatisation deal with the Czech CEZ, which has purchased 100 per cent of the Varna Thermal Power Plant (TPP). Ovcharov described the deal as an offset one, saying that CEZ has committed itself to putting an additional 40 million euro into a future investment fund for the implementation of energy sector projects. Ovcharov said that CEZ planned to invest the additional funds in renewable energy sources and energy efficiency measures in Bulgaria. Details on CEZ energy efficiency projects will be specified in the future and the Bulgarian state will control the investments.

Ovcharov and CEZ will sign a memorandum for the establishment of the investment fund upon signing the sell-off contract for the Varna TPP.

Offset deals include the commitment of the foreign buyer of goods or services to make investments in the country-assigner, to transfer know-how or commit to buy local produce for a set sum that is part of the offset deal’s value.

The same day, following Ovcharov’s presentation of his plan, Sofia’s city council accepted a short-term programme for energy effectiveness.

Tasko Ermenkov, executive director of the Energy Efficiency Agency, said that funds could be allotted from the state budget for the investigation of five to six municipal buildings, in order to set up measures of public importance for Sofia and in order to define the measures that should be taken in regards to the buildings, so that their energy expenses would be decreased.

Ermenkov said that for 2006, the funds allocated by the state budget would amount to two million leva. The money will be divided between 264 municipalities. Ermenkov noted that at least 5000 buildings with areas of over 1000 sq m would be subject to certification.