Bulgaria Energy efficiency report

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1 Bulgaria Energy efficiency report Objectives: 7.3 TWh of end-use energy savings by 16 17% reduction in primary energy intensity by Overview 9-9 (% / year) Primary intensity (EU=) % ++ CO 2 intensity (EU=) % + CO 2 emissions per capita (in tco 2 / cap) % -- Power generation 9-9 (% / year) Efficiency of thermal power plants (in %) % - Rate of electricity T&D losses (in %) % + CO 2 emissions per kwh generated (in gco 2 / kwh) % -- Industry 9* -9* (% / year) Energy intensity (EU=) % ++ Share of industrial CHP in industry consumption (in %) % -- Unit consumption of steel (in toe / t) *8 and -8 for steel ++ Among best countries + Better than the EU average - Below the EU average -- Among countries with lowest performances Latest update: January 11 1 The European Union, as the best-performing region, is used as the benchmark. 1 Bulgaria Country reports

2 1. Overview 1.1. Policies: 7.3 TWh of energy savings by 16 The country adopted a National Energy Efficiency Action Plan including an energy savings target of 7.3 TWh (627 ktoe) for 16 to be achieved in buildings, transport and industries (excluding establishments under the Emission Trading Scheme). The National Long-Term Program for Energy Efficiency - aims to reduce primary energy intensity by 17 percent by. A law on Energy Efficiency was adopted in March 4 and amended several times to comply with EC requirements, and the New Energy Efficiency Act was adopted in 8. It introduced mandatory energy audits and the certification of all new buildings, as well as minimum efficiency standards for new constructions and electrical appliances. gas at 12 percent. Nuclear power and hydroelectricity account for 23 percent and 2 percent of primary consumption, respectively. The share of biomass is limited (4 percent). Industry s share in final energy consumption fell rapidly, from 61 percent in 199 to 41 percent in 9. That decline, which in part was due to the sector s decreasing energy consumption, is also explained by the strong growth in the energy consumption of transport: its share in final consumption doubled between 199 and 9, reaching 27 percent. The households and services sector accounts for 32 percent of final consumption, compared with 26 percent in 199. Figure 2: Distribution of final energy consumption by sector The country has introduced financial assistance for energy efficiency projects. The Bulgarian Energy Efficiency Fund (BEEF) provides soft loans, partial credit guarantees and portfolio guarantees (ESCO and residential) to promote energy efficiency projects. A Residential Energy Efficiency Credit Line offers households soft loans and percent incentive grants for building renovations or equipment replacements Households -Services -Agriculture Transport Industry (including non energy use) 1.2. Energy consumption trends: declining consumption At 2.3 toe/cap, Bulgaria s total energy consumption (primary consumption) per capita is around 3 percent below the EU average. Primary consumption fell by 34 percent between 199 and, and grew by just 1.1 percent/year until 7. In 8 and 9 it declined by 1. percent and 13 percent, respectively, due to the global economic crisis. Figure 1: Total and final energy consumption trends Electricity consumption per capita is 46 percent lower than the EU average, at around 1,3 kwh. It fell by 3.6 percent/year between 199 and, but rose by 2 percent/year until 8. In 9 it dropped by almost 7 percent, with a sharp decrease seen in the industrial sector (-11 percent). Industry accounted for 41 percent of electricity consumption in 8, compared with percent in 199. Mtoe Primary consumption Final consumption Bulgarian primary consumption comprises coal at 38 percent (32 percent in 199), oil at 23 percent (33 percent in 199) and Country reports Bulgaria 2

3 Bulgaria Energy efficiency report Figure 3: Electricity consumption trends by sector TWh Industry 199 Others 1.3. Energy efficiency and CO 2 trends: rapid improvements between and 9 Between 199 and 9 primary energy intensity (primary energy per unit of GDP) decreased by 3.7 percent/year. That improvement was achieved through a rapid fall (4.2 percent/ year) in final energy intensity (final energy per unit of GDP). Over the more recent period (-9), the decrease in primary energy intensity was faster, at.1 percent/year, and even exceeded that of final energy intensity (3.7 percent/year). Those efficiency gains accounted for the reduction in CO 2 intensity (CO 2 emissions per unit of GDP) of 3.4 percent/year between 199 and Power generation 2.1. Policies: 21% of renewables in electricity consumption by According to the European Directive on the promotion of renewable energy, Bulgaria s national target is to increase the share of renewables in electricity consumption to nearly 21 percent by. Bulgaria s Renewable and Alternative Energy and Biofuels Act (7) introduced feed-in tariffs for PV, wind, biomass and biogas, geothermal and small hydroelectricity. The Act also includes guarantees of origin, the mandatory connection of renewable electricity sources to the network, long-term power purchase agreements (- years depending on the type and size of the installation), the mandatory purchase of renewable electricity and priority access to the electricity grid. In 11 Bulgaria plans to introduce tradable green certificates, which producers will be able to choose as an alternative to feed-in tariffs Power generation trends by source: rising coal share Coal-fired generation accounts for 1 percent of power production, followed by nuclear power (3 percent) and hydroelectricity (8 percent). Oil-fired and gas-fired generation is limited (1 percent and 4 percent, respectively). Wind power accounts for 1 percent of power generation. Figure : Power generation by source Figure 4: Energy and CO 2 intensity trends %/year -1% -2% -3% -4% -% -6% -7% Primary energy intensity Final energy intensity CO 2 intensity TWh *Including biomass, geothermal and solar Other* Wind Hydro Nuclear Gas Oil Coal-Lignite 2.3. Efficiency of the power sector: improving efficiency rate in power generation The average efficiency rate of power generation grew by 6 percentage points between 199 and 9, to 32 percent. That improvement was achieved through an increase in the efficiency rate of thermal power plants, from 22 percent to 28 3 Bulgaria Country reports

4 percent; nevertheless, that level remains almost 3 percent lower than the EU average. Figure 6: Efficiency of power generation and thermal power plants Figure 8: Electric T&D losses 3 3 % % Total power generation Thermal power plants Figure 7: Thermal electricity capacity, by technology CO 2 emissions per kwh are almost percent higher than the EU average, at gco 2 /kwh. That level is due to the dominant share of coal and lignite in power generation, mitigated by the high share of nuclear power. GW Steam Figure 9: CO 2 emission factor for power generation gco ₂/kWh The average rate of T&D losses increased by 9 percentage points between 199 and, but fell from percent to 16 percent in Industry 3.1. Policies: energy audits and soft loans Since 4 industrial companies with an energy consumption of over 3 GWh/year have to conduct mandatory energy audits every three years. The state budget includes funds to cover the audit costs of small and medium companies affected by this obligation. Those energy audits are expected to save 1.3 TWh by 16. Industrial companies consuming more than 3 GWh/ year can also enter into voluntary agreements (long-term energy savings agreements). Country reports Bulgaria 4

5 Bulgaria Energy efficiency report The Bulgarian Energy Efficiency and Renewable Energy Credit Line (BEERECL) was jointly established by the EBRD, the Bulgarian Government and the EU. It offers industrial companies loans of up to billion leva (US$3.7bn) and incentive grants of up to percent of the investments made in energy efficiency (CHP generation, optimization of processes, reconstruction of energy infrastructures) or renewable energy projects. To date, loans have been granted for 2 projects; the resulting energy savings are estimated at almost 1 TWh/year. Industrial companies can also benefit from loans from the Bulgarian Energy Efficiency Fund (BEEF) to finance investments in high-efficiency industrial processes, building rehabilitation and heat source and distribution system improvements Energy consumption trends: stable consumption since Industrial energy consumption fell by 62 percent between 199 and and remained relatively stable until 8 (-.2 percent/year). In 9, it dropped by percent due to the global economic crisis. Figure : Industrial energy consumption while the steel industry accounts for 16 percent (down from 24 percent in ). The share of the non-metallic minerals industry (mainly cement) is growing steadily, from 12 percent in 199 to percent in 9, as is the share of the paper industry ( percent in 8). Figure 11: Energy consumption of industry, by source Biomass Heat Electricity Gas Oil Coal/Lignite 9 Figure 12: Energy consumption of industry, by branch Mtoe Other Paper 3 Non metallic minerals 2 4 Chemical 1 3 Steel Electricity is the most consumed energy source in Bulgarian industry (29 percent in 9, up from 21 percent in ). The shares of oil and gas in industrial consumption declined significantly, from 24 percent and 26 percent, respectively, to 17 percent and 19 percent, while the drop in coal and lignite consumption was less marked (16 percent, down from percent). Heat and biomass are increasingly used in industry: the share of heat grew from 8 percent to percent, while biomass reached 3 percent (up from 1 percent). The share of energy-intensive branches in industrial energy consumption is increasing, from around 6 percent in 199 to 7 percent at present. The chemical industry is the largest consumer with 27 percent of industrial energy consumption, 3.3. Energy intensity trends: limited efficiency gains in the steel and chemical industries Between 199 and 8, energy intensity in Bulgarian industry decreased at the rapid rate of.4 percent/year. Efficiency gains were significant in the cement industry, which saw its specific energy consumption per ton produced drop by 8.7 percent/ year. However, improvements were more limited in the two largest industries: the energy intensity of the chemical industry decreased by 2.9 percent/year, while the specific consumption of the steel industry fell by 2.1 percent/year. Bulgaria Country reports

6 Figure 13: Trends in the energy intensity of industrial branches 3. Total* Steel Chemical Cement** Figure : Trend in energy intensity of manufacturing and structural effect %/year *Including construction and mining ** Non metallic minerals The share of industrial CHP in industrial electricity consumption decreased fourfold between and 9, to 8 percent (compared with the EU average of 17 percent). %/year Figure 14: Share of industrial CHP in industrial consumption 3% 3 % % 1 % Real variation Change at constant structure Structural effect The energy intensity of the manufacturing industry, ie, excluding construction and mining, decreased by 4.9 percent/year between 199 and 8. The energy efficiency improvements achieved in all industrial branches contributed to a larger decrease in energy intensity (-6.8 percent/year), as shown when the energy intensity is measured at constant structure. However, structural changes in energy-intensive industries had a negative impact on energy intensity and offset part of those energy efficiency gains. All information or data provided by Enerdata, in any form, is the property of Enerdata and is protected in each country by national laws governing intellectual property. All information or data provided by Enerdata is copyright protected, inclusive of material appearing in a hard copy format or electronically. Data provided by Enerdata are based on compilation and analysis of the best sources in the industry. Enerdata has agreements with those providers to use and publish this data. All pictures Copyright ABB Country reports Bulgaria 6