FREQUENTLY ASKED QUESTIONS
Which buildings, state or municipal property, are subject to compulsory energy investigation?
ÑAccording to Art. 6 of Ordinance No. 21, dated 12th November 2004 of the Ministry of Energy and Energy Resources for energy efficiency study, subject to energy study are energy consumers with common useful area of the buildings greater than 1000 m2 and are subject to energy certification as per the order of Art. 16 of the Energy Efficiency Law.
Which enterprises and factories, private property, are subject to energy study?
According to Art. 6 of Ordinance No. 21 dated 12th November 2004 of the Ministry of Energy and Energy Resources for energy efficiency study, subject to energy study are manufacturers of goods/services, which sites have annual energy consumption equal to or bigger than 3000 MWh.
What is the main purpose of the executed energy studies of buildings in the public and state sector and of private enterprises?
The main purpose of the energy study is to determine the potential possibilities for decreasing the energy costs and to propose measures for increasing the energy efficiency and achieving higher degree of environment protection.
What are the realistic instruments and mechanisms for implementation of projects for energy efficiency and renewable energy sources?
Financing through own capital including own resources of the investor; increasing own capital through granting a participation (share) in it to other investors (trade companies, banks).
Financing by loan capital, including loans from commercial banks; loans from funds; commercial credits; credit from ESKO; leasing. Financing through grant schemes, including funds (IFC, NTEF), the Company for Control of the Environment Protection Activities; international programs, sale of reduced emissions of greenhouse gases
What are the current mechanisms for implementation of energy efficiency projects and renewable energy sources projects?
Êàêòî çà èíäóñòðèÿòà, òàêà è çà ïóáëè÷íèÿ ñåêòîð â ìîìåíòà ñà àêòóàëíè ñëåäíèòå ìåõàíèçìè:
• Regional Development Operational Program;
• Competitive Power Development Operational Program;
• Environment Operational Program;
• Rural Areas Development Program 2007-2013;
• Energy Efficiency Bulgarian Fund;
• Cohesion Fund;
• National Trust Eco Fund;
• Financial Mechanism: European Economic Area;
• Program of EBRD - BEERECL;
• Program of EBRD – Finance Facility for Energy Efficiency – EUEEFF;
• Budges resources.
What complex services does Erato offer to its clients?
Erato as a leader on the market of complex services for implementation of projects for energy efficiency and renewable sources offers to its clients the following services:
• Execution of energy studies and pre-design investigations of public and manufacturing infrastructure;
• Execution of sector studies, preparation and implementation of energy strategies;
• Production and supply of bio-fuels (wood pellets, energy slivers, fruit pits, fir);
• Production and supply of heating boilers and subsidiary facilities for the heating installations and the domestic hot water systems;
• Designing of heating and sun installations;
• Installation of energy equipment and handing over the site "key-built";
• Starting, adjustment and putting into operation of the equipment;
• Training and preparation of the staff;
• Guarantee and after-warranty maintenance;
• Technical and consultancy help in project financing.
What are the advantages of the municipalities of the Erato Contracts for Energy Efficiency with guaranteed result and a Contract for Sale of Thermal Energy?
The advantages for the municipalities of the offered by us Contracts for Energy Efficiency with guaranteed result and a Contract for Sale of Thermal Energy are the following:
• Decrease of the operational costs by increasing the energy efficiency – economic effect;
• Improvement of the thermal comfort and the working conditions in the buildings.
• Provision of external financing source for activities which are not typical for the municipalities;
• Work with only one source of services and equipment;
• Possibility for provision of financing of the project (access to capital);
• Provision of access to technical experience of the energy services company;
• Provision of technical and financial guarantees for the achievement of the project results;
• Reporting ability for the whole period of validity of the Contract;
• Ecological benefits from the decreased energy consumption and the usage of renewable energy sources – wood bio-mass;
• Social benefits from the appointment of servicing staff, necessary for the obtaining and supply of the ecological fuel – wood biomass.
Which factors influence the obtaining and transportation of wood in the timber industry?
Relief and slope of the area; type and taxological characteristics of the tree-distances; concentration of the obtained materials and the type of felling; condition and density of the road network in the forests; type and number of the machines used.
What is the technology of storage and preservation of the produced energy slivers (wood chips)?
In the open air - in figures (piles) with a height of 7 to 8 meters and a volume of 2000 to 5000 m2 Time for storage of the technological slivers in the open air:
• Summer season:
- Slivers from coniferous wood (softwood) – from 7 to 8 months
- Slivers from broad-leaved wood – from 3 to 4 months
• Winter season:
- Slivers from coniferous wood (softwood) – from 8 to 9 months
- Slivers from broad-leaved wood – from 4 to 5 months
What does the offered by Erato Contract with guaranteed result represent?
The guaranteed result contract or the ESKO-contract is a contract where the company of ESKO fully finances the project of its client. Then it receives the invested funds with the really achieved economy, guaranteeing the energy efficiency effect. The company invests own funds, guarantees by contract and after that every month it receives the return of its investment from the really made economy.
What is Internal Rate of Return (IRR)?
IRR achieves the same result for assessment of the project, but in a different way. Using the same data as NPV, IRR gains a rate of return of the investment by accepting a critical point or NPV=0. If IRR is smaller than the current interest rate, this shows that the depositing of the funds for the investment in a bank will make a greater profit, than their implementation in the project.
What is the period of the investment return?
The easiest and basic measure of financial return of the project is the period of return. It influences the term required for the return of the investments made in the project through net profits. In the cases where the annual profits are expected to be constant, the period of return may be calculated as per the following formula:
| Period of return = |
Total Capital Cost (BGN) |
| Net Annual Cash Flow (BGN/year.) |
What real benefits will be achieved through the offered by your company water-warming boilers, using biomass for heating and hot water for domestic needs of the municipal buildings?
The offered by Erato products and services on the market have the following benefits for our clients:
• Economic benefits – significantly lower consumption of fuel for heating and domestic hot water of the buildings and reduced usage costs.
• Improvement of the thermal comfort in the premises.
• Ecological benefits – reduction of the emissions of greenhouse gases in the atmosphere
• Social benefits – in case of sites in the public sector – opening of new working places.
