Two new financing programs were announced by EBRD President Thomas Mirow at the two-day Regional Energy Forum, held last week, March 30-31 2009, in Sarajevo. The conference was jointly organized by the Energy Community and the European Bank for Reconstruction and Development (EBRD), focusing on electricity generation and green energy investments. Achieving energy efficiency in the Western Balkans remains a key challenge in a region where energy usage ranges between 2.5 and 4 times higher than the average for OECD countries in Europe.
In his speech, Mr. Mirow elaborated on the two financing schemes, namely the Western Balkans Sustainable Energy Credit Line and Direct Lending Facilities. The idea of the Energy Credit Line is to make € 50 million available in loans to local banks for on-lending to enterprises and households. The money will be directed for investments that result in higher energy efficiency – both for industry and households. The Western Balkans Direct Lending Facility targets similar but larger projects which will be directly financed by EBRD. Both programs are designed to encourage businesses to pursue sustainable energy projects that are often challenging to finance and implement; they also provide assistance from technical consultants to help develop projects. The financing also includes incentive payments that reward reductions in Greenhouse gases as a result of projects funded by the facilities.
The EU Commissioner for Energy, Mr. Andris Piebalgs, in his opening words stressed the urgency of energy reforms and argued that “without reform of energy, investments will be delayed”. In this context, he defined the role of the Energy Community as “the best bridge into the EU internal energy market”. He underlined that the SE European region needs investments in electricity generation and that investors still need to see more political determination to complete reforms. He pointed out that a well-functioning regional electricity market will facilitate investments that the New Directive on renewable energy will create new investment opportunities. As regards the Treaty implementation, Mr. Piebalgs praised the progress achieved; both as regards primary legislation and implementation measures. Yet, he noted that “in certain countries the path of change is slowing down”.
Mr. Slavtcho Neykov, Director of the Energy Community Secretariat, noted the increasing “energy nationalism” apparent in many countries in the area of SE Europe and emphasized the importance of a regional energy strategy for energy. He also announced that in the coming months Georgia and Turkey will become full Energy Community members.
In addition to energy efficiency, Mr. Georgios Koutzoukos from the Greek Energy Regulator (RAE) addressed the ambitious Energy Community Coordinated Auction Office (CAO) project. Envisaged as a one-stop shop for capacity allocation, the CAO will enable non-discriminatory congestion management based on competitive principles and transparent capacity allocation. Once formed, the CAO will be a great leap towards the creation of a regional electricity market. A more harmonized electricity market enhances, in return, security of supply.
Representatives from companies active in the region such as AES, Verbund, EVN, EFT, and Statkraft highlighted the investment opportunities in the region and stressed the need to sustain the increased investment in infrastructure despite the current financial turmoil and the temporary drop in consumption and energy prices
The forum was opened by Bosnia and Herzegovina Chairman of Council of Ministers Nikola Spiric, while ministers from Albania, Serbia and Georgia also made addresses.