The Regional Energy Efficiency Programme

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Regional Energy Efficiency Programme

Promoting renewable energy and energy efficiency

The Regional Energy Efficiency Programme was established by the Western Balkans Investment Framework in 2012. Various organisations cooperate to make it a success, including the Energy Community, the European Bank for Reconstruction and Development, European Commission and KfW Banking Group. It comprises more than € 600 million of investments from the EBRD and KfW Banking Group, which are combined with grants from the WBIF.

PARTNERS:

European Commission EBRD CEB KFW

Objectives

To support Western Balkan beneficiaries achieve their sustainable energy objectives.
To help create a sustainable market for energy efficiency in the region
To promote renewable energy and energy efficiency
To stimulate energy efficiency investments

REEP/REEP+ Success Stories and Projects

Investing in Sustainable Energy Has Never Been So Easy

Introduction of Nearly Zero-Energy Buildings in the Western Balkans

Bosnia: Microloans to improve energy efficiency

Serbia: New building for packaging factory saves energy

EBRD and EU help Serbia’s Bel-Plast to become more energy efficient

How to go solar in Serbia

Turning waste into energy in Serbia

ESCO (EE Energy Service Company) Projects Support

€8 million in technical assistance

Supporting public authorities to prepare and implement energy efficiency projects

The EBRD provides support to promote energy performance contracting in the public sector and public-private partnerships. Technical assistance is offered to municipalities or central governments to prepare, tender for and implement energy performance contracts for energy efficiency projects such as street lighting and energy supply contracts.

FINANCING

2.1 Intermediated finance (WeBGEFF)

Credit lines through partner financial institutions

Up to € 302 million available.
€ 50 million provided by KfW for direct lending for private sector sustainable energy projects
Supported by the WBIF and bilateral donors

Financial assistance to individuals, businesses and municipalities wanting to invest in energy efficiency and small-scale renewable energy projects. WebGEFF focuses on residential sector energy efficiency and small-scale renewable investments implemented by individuals and housing associations.

The Western Balkans Green Economy Financing Facility (WB GEFF) was launched in 2017, focusing on residential sector energy efficiency and small-scale renewable investments implemented by individuals and housing associations. The KfW and participating financial institutions (PFIs) are now expanding their investments in sustainable energy.

Results

A total of 427 sub-projects financed
Investment amount of € 16.3 million
7,734 tonnes a year of greenhouse gas emissions savings
27,127 MWh/year of primary energy savings
CO2 emissions reduced by more than 132,000t per year

The EBRD

Successfully runs these projects to boost the green economy in 27 different countries. It has made available more than € 4.4 billion for financing projects through more than 140 local partner financing institutions.

The KfW

Supporting energy savings in residential buildings for the past 10 years: worldwide over 4 million housing units have either been built or refurbished to make them more energy efficient during this period. In the Balkans region KfW has issued more than € 160 million in loans or grants to builders and renovators with the financial cooperation of the German government.

2.2 Direct Financing (WeBSEDFF)

Investments in RE and EE in enterprises

€ 80 million allocated by the EBRD
The WBIF grant funding for technical assistance and investment incentives

Investments in both medium-scale renewable energy and energy efficiency improvements in industrial enterprises Local small and medium-sized enterprises or project developers:

industrial energy efficiency projects
renewable energy projects
private ESCO projects in the public sector.

Eligible borrowers can benefit from:

Direct loans range from € 1 million to € 6 million.
Free technical consultancy services to prepare sustainable energy projects
Cashback incentive payments based on the estimated reduction of CO2 emissions

DIRECT FINANCE PUBLIC BUILDINGS

Lending to state entities and municipalities for public buildings

€ 145 million available through the EBRD and KfW Group
€ 20.7 million in EU and bilateral donor grants
€ 4.6 million for technical assistance

Support to state entities, cities and municipal companies to improve energy efficiency in public buildings, such as schools, hospitals or government buildings.

Concept

KfW has a particular focus on highly efficient public buildings - Nearly-zero-energy-buildings (NZEB) or EnergyPlus (EP) buildings which form an indispensable building block on the way to carbon neutrality. KfW also promotes the Energy Monitoring Systems in public buildings, supported by IT smart devices to detect inefficiencies and optimise the operations of a building.

POLICY DIALOGUE SUPPORT

Enabling policies for the transition to sustainable energy efficiency markets

€ 5.35 million from the WBIF and EBRD

Policy products to improve the regulatory environment and remove barriers for investments in energy efficiency. Policy dialogue activities with governments in the Western Balkans aim to align their relevant legislation to EU standards. To date 50 policy deliverables have been finalised. The policy assignments are implemented in close cooperation with the Energy Community Secretariat. Governments are welcome to submit Expressions of Interest for such support, with reference to any of the key areas listed below.

Primary and secondary legislation governing energy efficiency in accordance with the Energy Efficiency Directive (EED)
Primary and secondary legislation governing energy efficiency in buildings, in accordance with the Energy Performance of Buildings Directive (EPBD)
Targets and actions for energy efficiency in national strategies
Supporting markets for energy-efficient equipment for example, public procurement policies, energy labelling and eco-design
Institutional capacity-building and tools for policy implementation, compliance and enforcement