The Paris Agreement aims to achieve a sustainable low-carbon economy but for the implementation, it needs more actions to improve the energy performance of buildings and energy efficiency in the industrial sector. The European Green Deal includes policies for district heating to integrate renewable sources in the energy mix and implement sustainable decarbonization solutions by 2050. Toplofikacia Sofia E.A.D is the oldest and largest district heating network in the Balkan Peninsula and plays a key role in energy security, environmental sustainability, and competitiveness of the economy of Bulgaria. Approximately 65 percent of the energy consumption in Sofia is from the heat network and compared to conventional heating technologies, district heating has many advantages. For example, it makes more economic and ecological sense in urbanized centers and is considered the only adequate option to improve outdoor air quality. On the other hand, the new construction rate in Sofia also increases the building energy renovations, leading to sustainable energy development. То stimulate the sector, the European directives impose energy efficiency obligations, which lead to economic and social benefits, such as reduction of energy consumption, bill savings, improvement of indoor air quality, and environment. The energy efficiency obligations rules are that the obliged energy companies must prove that they have realized energy savings for the end-users. In some countries, energy-saving obligations are combined with white certificates, which could be traded or earned from different participants. Energy supply companies establish contracts with third parties such as thermal-insulation companies, retailers, manufacturers, and HVAC installers to deliver their aims. Some contracts even include a deep R&D study such as CFD analysis, simulations, innovative measures, patents, experiments with new systems, etc. The purpose of this article is to present the different points of view between the profits of the obligated energy companies and the energy savings for end-user.
The topicality of the article is that energy-saving obligations are realized only by the limit of the end-users. This seriously affects energy traders and supply companies, where their profits are mainly from the quantity of heat and electricity sold. The government requires a reduction of the user's energy consumption, but this obviously results in reduced profits for energy traders too. Through the adopted laws, energy companies cannot realize savings in production either, because it requires us to realize savings only in the end user. The modernization and replacement of highly efficient equipment in industrial plants, the use of renewable energy, and the use of reasonable energy-saving measures, also lead to an increase in energy efficiency, but the government does not accept this to cover the obligations. Although efficient plants also reduce the overall environment of carbon emissions, at this stage it remains an investment for savings only for the owners’ bill. Finally, it should be emphasized that the funds and finance mechanisms in the industry are less than in the building sector.
"It is widely viewed that new finance and political models are necessary to deliver the energy efficiency potential of buildings and the industrial sector."
Different practices for energy renovations and finance instruments for residential buildings, such as grants, loans, and innovative financing schemes - energy efficiency mortgages, crowdfunding, etc. are established in practice. Tax incentives can be a good tool for financing through tax exemptions or benefits, and the measures cover all improvements in the building performance, joining to district heating, and using renewable energy. Another example is the Energy Services Companies /ESCO/, which finances the energy performance improvement project and from the energy savings during operation, the end-users pay out the investment and have lower costs. In case of lower energy performance, the ESCO contract must financially compensate the users. For this reason, ESCO projects are successfully applicated to large energy consumption such as industrial systems or low-performance buildings. Unfortunately, the financing instruments involve different stakeholders and due to the complex material of the sector, there is no universal method for investment in energy building renovation. This problem is involved in the industrial sector too.
In conclusion, the article must note that there is no established economic balance between stakeholders in energy efficiency. In one case, the energy companies will profit more from selling energy and in another realize energy saving for the end-users, covering their imposed obligations from the government. For this disparity, there is no calculated price for energy regulation. The end-users are more stimulated to improve the building’s performance, but there are still many obstacles in the financial mechanisms. It is widely viewed that new finance and political models are necessary to deliver the energy efficiency potential of buildings and the industrial sector. The current article proved that no straight solution exists due to the complex material in the energy efficiency field, and the diverse interests in the government.
