Background

According to a previous study, Sofia s energy consumption for heating purposes is 240 kWh/sqm, which considerably exceeds the average European standard of 140 kWh/sqm. The main reasons for this high rate of consumption are excessive heat losses from the buildings due to inadequate thermal insulation and poor construction; an inefficient heat distribution system; and lack of control devices in the radiators. The distribution system is inefficient partly due to the lack of systems for automatic regulation and the lack of measuring equipment in many of the sub-stations. As a result of the high level of energy consumption, CO2 emissions are estimated to exceed 800,000 tons annually.

Practice

Sofia Municipality s overall goal is to reduce energy consumption by 30% by introducing cost-effective energy conservation measures in both residential and public buildings. In addition to saving money, the Municipality expected to reduce emissions of CO2 and other pollutants. The EcoLinks Challenge Grant enabled the Municipality to get started by funding the development of an energy efficiency action plan.

The objectives of this plan were to assess the energy consumption for both the public and residential buildings; identify appropriate energy conservation measures; and prepare a long-term energy conservation plan that defines the necessary financing, possible financial resources, and implementation steps for the selected measures.

Sofia Municipality teamed up with an American consulting company and a Bulgarian NGO to implement the EcoLinks project. The American partner was especially helpful in assessing different energy conservation measures and in developing marketing and business plans.

The main activities of the project were the following:

Collect data on current energy consumption
The available data on current energy consumption was collected for both the public and residential buildings. This included general characteristics and present condition of the buildings as well as the consumption of heat and electric energy. Based on this analysis, the buildings were classified into different groups according to their function, structure and energy consumption.

Develop audit methodology and conduct audit
It was decided to conduct two kinds of energy audits. First, a preliminary audit was conducted of the approximately 300 buildings owned by the Municipality by administering a questionnaire. The results were input to a database to support project implementation in later stages. Second, a detailed audit was conducted on two sample buildings, a school and a residential building. Computer models were used to determine current heat losses and estimate the potential for energy savings.

Identify energy conservation measures
As a result of the analysis of the audit, a list of energy conservation measures was prepared. The list included such basic measures as installation of meters to measure heat consumption, installation of thermostatic valves, and weatherization of doors and windows. For each measure, the necessary investment was determined along with the simple payback period. Also, possible administrative and regulatory barriers to implementation of the energy conservation program were identified.

Prepare action and marketing plans
The action plan detailed all the technical improvements necessary to implement the energy conservation program, along with the costs, risks and possible financing sources. It also provided for the creation of new institutions to operate the program. The marketing plan primarily targeted the owners of the private residential buildings. Their buy-in is essential in implementing the program in the residential buildings. Draft plans were first prepared and discussed in numerous meetings with municipal authorities, consulting companies, associations, equipment suppliers and residents. A separate workshop was organized to present results of the energy audits and to discuss priorities of the action plan. As a result of these public discussions, the action and marketing plans were finalized.

Results

Action Plan
The Action Plan scheduled the implementation of the energy conservation measures over a three to twelve-year period, depending upon the different ownership of the buildings; the owners limited ability to finance the measures and the institutional barriers that needed to be addressed. One consideration was to undertake easy, fairly inexpensive measures in the first three years before the current Mayor s term expired. Then a track record would be established when the new Mayor s term began.

A noteworthy initiative in the Action Plan was the creation of an Energy Efficiency Fund to finance the implementation of energy efficiency measures in the municipality-owned buildings. The Fund would be initially capitalized at $2.5 million. It would invest in energy efficiency measures that have the highest rate of return and shortest payback period. The money saved from reduced energy consumption would be returned to the Fund and invested in other measures on a revolving basis. It is estimated that the Fund would generate $51 million for energy efficiency investments over a twelve-year period with the initial $2.5 million fully recovered.