Loan (Bulgarian Energy Efficiency Fund – BGEEF)
Updated: 23.01.2019
Author: Ivana Naydenova
The Bulgarian Energy Efficiency and Renewable Sources Fund (EERSF) has been established by the Energy Efficiency Act and offers financing grants for projects aiming at improving the energy efficiency and supporting the use of renewable energy in public, industrial and residential buildings.
Project Eligibility Criteria
- The project must apply a well proven energy saving technology
- At least 50 % of a project’s benefits must come from energy savings
- Investment payback period – up to 7 years
- Investment range: BGN 30,000 – 3,000,000 (approx. € 15,338 – 1,533,800)
- Annual interest rate
- Project developer’s equity contribution – at least:
- 10 % in case of co-financing (EERSF & commercial bank)
- Credit maturity period: up to 7 years
Eligible technologies
Types of eligible projects
- Refurbishment of buildings
- Fuel replacement
- Thermal insulation
- Reconstruction of heat sources and heat distribution networks
- Reconstruction of heating, ventilation, air-conditioning and lighting systems
- Small cogeneration plants
| Aerothermal energy | Eligible. |
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| Hydrothermal energy | Eligible. |
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| Biogas | Eligible. |
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| Biomass | Eligible. |
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| Geothermal energy | Eligible. |
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| Solar thermal energy | Eligible. |
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Amount
| Beneficiary | Interest % | Maturity | Equity contribution |
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Municipalities Hospitals Universities Quasi-government organisations | 4 % - 7 % p.a. | up to 7 years | 10 % - 25 % |
| Corporate clients and private persons | 3.5 % - 5.5 % p.a. | up to 7 years | 10 % - 25 % |
- Partial Credit Guarantees (PCGs) – up to 80 % on a “pari passu” basis and up to 50% on a first-loss basis after the bank creditor but no more than BGN 800,000 (approx. € 409,030) of the approved bank credit.
- Portfolio Guarantees – up to 5 % of the portfolio (but no more than BGN 800,000 (approx. € 409,030).
- Guarantee Fees: 0.5 % to 2 % on an annual basis. Exceptions are possible.
Addressees
- Municipalities – 52.85% of BEEF total portfolio volume.
- SMEs – 35.23% of BEEF total portfolio volume.
- Universities/Hospitals – 11.92% of BEEF total portfolio volume.
Procedure
Process flow | - Application for credit
- Initial assessment of technical and financial viability and preliminary approval
- Assessment of credit risk (project and client) and specification of credit parameters
- Project approval by Credit Committee
- Project approval by Management Board
- Credit disbursement
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Competent authority | Bulgarian Energy Efficiency and Renewable Sources Fund (EERSF) |
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Distribution of costs
| Distribution mechanism | The grants within the EERSF programme are provided by the World Bank, the Government of Austria, the Government of Bulgaria, DZI Bank, the companies Lukoil Bulgaria, Brunata Bulgaria and Enemona, and are being distributed through the Bulgarian Energy Efficiency Fund and Renewable Sources Fund. |
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Bulgaria
