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“The case of GEF Sustainable Energy Project”

Zdravko Stefanovski Energy Efficiency and Renewable Energy Sources Expert


GEF and the World Bank approved a grant in the amount of $5.5 million to fund the GEF Sustainable Energy Project aiming at:  market transformation activities using technical assistance funds;  development of a utility-based Energy Service Company to implement third-party financing of energy efficiency projects; and,  investment in EE and RE through a Sustainable Energy Financing Facility (SEFF). Short history of the GEF Project in Macedonia


The Implementing parties of the Project grant were:  the Energy Agency of the Republic of Macedonia;  MEPSO; and,  Macedonian Bank for Development Promotion (MBDP). 

Results: MINOR (4 Rulebooks, 1 Study)

Short history of the GEF Project in Macedonia


Due to lack of progress, the Project was restructured in 2010 aiming to develop a sustainable market for EE and RE by supporting the development of an enabling framework, institutional capacity, and necessary financing mechanisms through 3 components:  Institutional Support, Technical Assistance and Project Management;  Financial Support for EE in Public Buildings; and,  Sustainable Energy Financing Facility (SEFF) Credit line for RE/EE. Short history of the GEF Project in Macedonia


The Implementing parties of the restructured Project grant were: ď ˝ the Ministry of Economy; and, ď ˝ the Macedonian Bank for Development Promotion (MBDP). The restructuring also included the creation of a new successful Project Implementation Unit

Short history of the GEF Project in Macedonia


Results: Component 1: Institutional Support, Technical Assistance and Project Management:  Wind database project 

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Supply and installation of 5 wind measuring masts throughout Macedonia Establishing a wind database Study for Integration of Wind Power Plants in the Macedonian Transmission System

Short history of the GEF Project in Macedonia


ď ˝

Wind database project

Short history of the GEF Project in Macedonia


Results:  Strategic Documents: 

National Program for Energy Efficiency in Public Buildings (NPEEPB) – approximates the funds needed to implement EE measures in most public buildings at EUR 95 million. Program for Implementation of the National Energy Strategy – sets out the short term goals (until 2017) of the National Energy Strategy

Short history of the GEF Project in Macedonia


Results: Component 2: Financial Support for EE in Public Buildings  Phase I – Grant Phase 

Investment Grade Energy Audits of 18 public buildings (schools and kindergartens) in 6 municipalities identifying a set of energy efficiency measures, procured through supply and installation contracts

Short history of the GEF Project in Macedonia


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Phase I municipalities:

Short history of the GEF Project in Macedonia


Short history of the GEF Project in Macedonia


Results (Phase I):  Implementation period: 8 months  Total investment: $1.4 million  Average annual energy savings: 55%  Average annual financial savings: $210,000

Short history of the GEF Project in Macedonia


Results: Component 2: Financial Support for EE in Public Buildings  Phase II – Co-financing Phase (50:50) 

Investment Grade Energy Audits of 23 public buildings (100% financed by the Project) in 6 municipalities identifying a set of energy efficiency measures, procured through supply and installation contracts

Short history of the GEF Project in Macedonia


Short history of the GEF Project in Macedonia


Results (Phase II):  Implementation period: 8 months  Total investment (50:50): $2.5 million  Average annual energy savings: 42%  Average annual financial savings: $272,000

Short history of the GEF Project in Macedonia


Results Most common EE measures implemented:  Replacement of external windows and doors  Installation of thermal façade  Roof thermal insulation  Replacement of heating system  Installation of automatic control system in existing boiler rooms  Replacement of existing lighting with LED lights...

Short history of the GEF Project in Macedonia


Results: Component 3: Sustainable Energy Financing Facility (SEFF) - Credit line for RE/EE  MEGASOLAR –1 MW PV power plant, average production in 2012 1,499 MWh. The total investment was EUR 915,000, jointly financed between the World Bank, MBDP and Ohridska Banka.

Short history of the GEF Project in Macedonia


Short history of the GEF Project in Macedonia


NPEEPB proposes 3 financing and implementation options: 

EE Fund (Lending facility for creditworthy Municipalities, EPC for institutions ineligible for borrowing). Dedicated EE credit line (through MBDP for creditworthy Municipalities). Project Structure (MoF provides loans to creditworthy Municipalities and/or institutions ineligible for borrowing).

Short history of the GEF Project in Macedonia


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Ministries prefer the creation of an EE fund. Provided proposal to the Government for Adoption. Fund to be established with funds from WB or other IFI’s. Structure: Management Board and Fund Manager. Fund Manager is an independent entity/consortium of banks and other entities with financial & technical expertise in the field of EE. EE Fund services: 

Loans EPC (ESCO)

Short history of the GEF Project in Macedonia


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EPC will be implemented through various ESCOs. With successful realization of EPCs in the public sector, the EE Fund will begin offering ESCO services to the private sector.

Short history of the GEF Project in Macedonia


THANK YOU FOR YOUR ATTENTION! CONTACT: ZDRAVKO STEFANOVSKI zdravko@gef-piu.mk

Short history of the GEF Project in Macedonia


Имплементација на GEF WB проект - Здравко Стефановски