A new grant scheme for grant funding for energy efficiency

Against the background of the rising prices of energy carriers, the uncertainty of gas supplies and the increased demand for alternatives, the Ministry of Energy announced a procedure for free financing of energy efficiency measures in enterprises. The grant scheme for “Energy Efficiency in Industry” is funded under the Financial Mechanism of the European Economic Area 2014-2021. The purpose of the procedure is to increase the efficiency of industrial processes in production and, accordingly, the competitiveness of Bulgarian enterprises in the long term.

Beneficiaries can receive funding in the amount of 100% of the value of each project, with the minimum amount of an individual grant being EUR 150,000 and the maximum being EUR 200,000. Project proposals with a higher budget can also be submitted, but the increase should be covered by the applicant with his funds.

Who can apply?

Eligible candidates are enterprises from all sectors that are registered in Bulgaria as a trader within the meaning of the Commercial Law. Applicants can submit project proposals independently or in partnership with legal entities from Bulgaria, the donor countries (Norway, Iceland, Liechtenstein), Serbia, Turkey or Macedonia. It is a mandatory requirement that the partner has experience and expertise in the implementation of energy efficiency measures.

What activities are supported?

The grant scheme provides grants for the implementation of energy-efficient solutions and technologies in the industrial systems of enterprises. Heating and cooling systems and/or energy production from RES are also eligible for financing, but the energy generated by them should only be used for the industrial systems part of the project.

An important feature of the procedure is that all energy-saving measures included in the project proposal must relate to the enterprise’s industrial processes and be recommended with an “Industrial System Energy Efficiency Survey Report” prepared by a person entered in the public register according to Art. 60, para. 1 of Energy efficiency act. An industrial process refers to a set of activities directly related to the technological processes for the production of a given product.

Unlike the applicant, who can perform investment activities, it is permissible for the partner to realize only the so-called “soft measures” which include the exchange of experience, knowledge and best practices at managerial and expert levels with the applicant enterprise. For a partnership to be considered effective, each participant must contribute to the successful implementation of the project and the achievement of mandatory project outcomes in the form of annual carbon emissions reductions and generated energy and financial savings.

What is funded?

Grant funding covers costs for the purchase of machinery, equipment and software; costs for construction and installation activities for putting the facilities into operation; staff expenses; overhead; business trips and other costs for support activities. The duration of implementation of each project must not exceed 12 months from the signing of the grant agreement.

Methodology for evaluation of project proposals

The evaluation and selection of project proposals will consist of two stages. First, the administrative compliance and eligibility of the project proposal and the applicant/partner are checked. Upon successful verification, the project proposal is subject to a technical and financial evaluation, where the project objectives, results and risks, as well as the realism and admissibility of the proposed activities and costs are considered in essence.

Project proposals that:

• Generate annual energy savings greater than 25% of annual energy consumption before project implementation;
• Achieve investment efficiency, calculated as a ratio between the grant and the expected annual amount of saved CO2 emissions, less than BGN 1,000/tCO2;
• They include activities to capture and reuse waste heat in industrial processes;
• Provide for the acquisition of means for measuring and controlling energy consumption;
• Include the participation of a partner/s from Norway, Liechtenstein or Iceland;
• They envisage the participation of experts who have at least three years of experience in the implementation of energy efficiency projects

Submission of project proposals

Project proposals, including the application form and all necessary annexes and declarations, are submitted entirely electronically through the Information System for the Management and Monitoring of EU Structural Instruments in Bulgaria (ISUN 2020). The application deadline is 21.10.2022.