Return to GEF Home Page Menu
1. Bulgaria is a country in transition from a controlled economy to a free market economy. This situation is creating unique and important opportunities for increased energy efficiency. By seizing these opportunities, Bulgaria will accelerate its recovery from its current economic recession and significantly decrease its future emissions of greenhouse gases (GHGs). This proposal will provide critical support for achieving these goals.
2. Bulgaria's gross consumption of primary energy was 976,628 terajoules in 1993. More than half of this energy was imported, creating a strong national interest in increased energy efficiency to reduce this outflow in capital, as almost all petroleum, natural gas and half the coal consumed are imported. The only significant domestic fossil fuel resource is coal, primarily a low-grade, high CO2 lignite in the Maritza region. Other large energy sources are nuclear power, which provides about 37% of Bulgaria's electric power, and hydro-power, which provides about 5%. For historical reasons, a large portion of Bulgarian's energy infrastructure, including major portions of its nuclear facilities, are aged and in need of major renovation or replacement.
3. Industry is the primary end-user of energy, consuming 47% of the nation's energy in 1993. Other end uses are residential, 34%; transportation, 8%; service, 7%; and agriculture, 4%. Industry's share has declined in recent years--from 55% in 1990. Meanwhile the residential sector's share has increased--from 23% in 1990.
4. Because of this aged energy infrastructure , the energy intensity of Bulgaria is more than twice as high as the average for the European Union: in 1991, Bulgarian energy intensity was 646 million tonnes of oil equivalent per million ECU, compared with 311 MTOE/MECU for the European Union. In recent years, Bulgaria has taken actions to create an environment that encourages energy efficiency, including measures to reduce and eliminate energy subsidies. To address this issue, Bulgaria has reached an agreement with the World Bank to increase the price of electricity in three steps to reach 3.5 cents (U.S. $) by September 1996. The first step was taken in September 1995, the second step was taken in April 1996, and the next step will be taken in August, 1996.
5. In the field of energy efficiency, MOE is coordinating its activities with the Committee on Energy (COE), the Ministry of Industry, and the Ministry of Territorial Development and Construction. The COE is the ministerial-level body responsible for Bulgaria's energy policies. On the legislative front, a fund for energy efficiency was established at the COE. In 1993, the COE issued, and later updated, an energy charter, which embeds energy efficiency into the basic energy policy of the country. Administrative actions have established national energy efficiency standards and norms that are applicable to new buildings. Under the COE, a network of energy efficiency inspection offices has been established in each of Bulgaria's nine regions. Draft legislation strengthening energy efficiency and supply programs is now pending before the National Assembly. A comprehensive energy strategy, which emphasizes energy efficiency, was submitted by the Council of Ministers to the National Assembly and is under discussion. A new sub-commission, specified for energy efficiency, was established within the organizational structure of the National Assembly.
6. Bulgaria also has actively pursued international support to achieve its energy and environmental goals. Bulgaria also has received important support from the PHARE, THERMIE, JOULE II, and SAVE programs, the U.S. AID programs, the Netherlands's Novem program, JICA (from Japan), ADEME (France), UN-ECE, UNDP, and other foreign and international programs.
7. The UN/FCCC was signed at the Rio Summit in 1992, and was ratified on 16 March 1995 by the Bulgarian National Assembly. The Ministry of the Environment (MOE) is responsible for developing, coordinating and implementing Bulgaria's obligations under the UN/FCCC. The first National Communication, required by the UN/FCCC, has been officially introduced by the Bulgarian Government in February, 1996. The Demonstration Zone project is included in Part 4 of the National Communication as one of the important measures for GHG emissions reduction. The Bulgarian Government has embraced energy efficiency, not only for its economic benefits, but also as a primary strategy for reducing its future GHG emissions and meeting its obligations under the United Nation's Framework Convention on Climate Change (UN/FCCC). In 1988, the country's base year under the UN/FCCC, fully 86% of its GHG emissions came from CO2 emissions largely from energy sources. Bulgaria received support from the U.S. Country Studies Program, which is assisting Bulgaria in studies required by the UN/FCCC. The studies of GHG emissions, vulnerability and adaptation to climate change, and mitigation of GHG emissions are being used to develop the Action Plan required by the UN/FCCC and in the design of energy efficiency strategies contained in this proposal.
8. Achieving these energy and environmental goals will require a basic institutional and behavioral transformation because of the under-valuing of energy resources in the past. To help achieve this change, this proposal concentrates its efforts on one municipality, the City of Gabrovo, making it a laboratory for energy efficiency measures and transferring the lessons learned there rapidly throughout the country. With a population of 77,000, Gabrovo is typical of the medium-sized cities found throughout Bulgaria. Gabrovo is both a city and the administrative center of a municipality, the term used for the surrounding area. Bulgaria is divided into 254 municipalities, which are the principal political authorities below the national government. This city has been selected because of the demonstrated commitment of its leaders to energy efficiency, because of its representative nature, and because of the key role--based on their administrative and financial authority--that municipalities can play as agents of change.
Project Review
Project Objective
Table of Contents
Work Programs Menu