Energy efficiency and renewable energy services in the tourist sector in Bulgaria

ALBENA 9th MAY 2014 9:30 amFLAMINGO GRAND HOTEL - ALBENA, BULGARIA

ENTERPRISES FOR GREEN TOURISM DEVELOPMENT

Bulgarian tourism recorded yet another strong year in 2012 with the number of inbound tourist trips increasing for a third consecutive year after the halt in 2009 which was caused by the general drop in touristic flows caused by the global financial crisis.

The number of inbound tourist trips to Bulgaria and total incoming tourist receipts increased by 3% and 2% respectively in 2012, with growth mainly being fuelled by the growing number of Russians and Ukrainians visiting the country during the summer.

Statistical data for the tourism sector in Bulgaria

Changes in legislation

Throughout most of 2012 the Ministry of Economy, Energy and Tourism (MEET) worked on amending tourism legislation, with the final voting expected to take place in the first months of 2013.

The proposed changes will remove the permanent categorisation of hotels and other outlets and introduce temporary categorisation for five years.

In addition, the new legislation will also introduce new categories of touristic outlets such as hostels, guest houses and tourist apartment complexes which so far have not been classified and have not been checked to see if they offer a certain minimum level of service.

Summer Tourism in Bulgaria

The Black Sea Coast offers attractive seaside resorts. The sunshine record is exceptional with an yearly average of nearly 300 days of sunshine. Tourists enjoy various opportunities for climate-treatment and balneo-treatment, yachting, surfing, water skiing, diving, underwater fishing, other aquatic sports and diverse entertainment opportunities.

There are special itineraries combining see tourism with active tourism and providing opportunities for hiking, cycling, riding, photo-tourism, and eco-tourism, as well as visits to natural, archaeological and cultural places of interest.

Ski and Mountain Tourism in Bulgaria

Rila, Pirin, Vitosha, the Rodopes, and the Balkan Mountains offer good possibilities for ski and mountain tourism. In the international resorts of Pamporovo, Borovets and Bansko one can enjoy some of the best skiing in Europe with snow covers lasting from Christmas until Easter and ski tracks for beginners and professionals at all levels.

There are many ski schools providing individual and group lessons.

The following figure illustrates the main environmental elements involved in running a hotel. The “input” describes the material needed for the operation of a hotel; the “output” is the emission or by-product caused by the operation of the hotel.

Hotels have a direct influence on the input and output.

Why should my hotel care about energy consumption?

Type of investment to EE and RES projects in the

hotel’s infrastructure:

Low-term project investments: from one month till 1 year; Middle-term project investment: from 1 year till 5 years; Long-term project investment: over 5 years.

Potential EE and RES projects in the hotel’sinfrastructure:

Installation of new heat insulation of the building’s walls, floor and roof;

Installation of new efficient windows framework; Solar thermal collectors for heating, DHW and for SPA center and

swimming pool; Heat pumps for heating, DHW and for SPA center and swimming

pool; Fuel switch from conventional fuels to wooden biomass; Improvement of the internal and external lighting systems; Installation of PV system on the roof for electricity generation; Better operational use of current equipment (through equipment

control and regulation);

Potential EE and RES projects in the hotel’sinfrastructure:

CHP installation for combined electricity and heat energy generation and consumption;

CHP installation for combined electricity and heat energy generation and consumption using wooden biomass as a fuel

CHP installation based on biogas generation from anaerobic waste fermentation (indirect utilization of biomass);

New chillers and air conditioning systems for cooling with lower electricity consumption;

Replacement of non sufficient kitchen appliances with new one; Improve (other) electric equipment efficiency; Energy monitoring system implementation; Facility management system implementation.

Feasibility Study in the Hotel’s Complexes (2011-2013)

Energy consumption and costs data base

Electricity TotalLight Fuel

OilNatural Gas Electricity Total

(t/yr.) (МWh/yr.) (1000nm3/yr.) (МWh/yr.) (МWh/yr.) (МWh/yr.) (BGN/yr.) (BGN/yr.) (BGN/yr.) (BGN/yr.)1 Alexander SPA Hotel Bansko 80 924 24 948 176000 2424 1784242 Hotel Samokov Borovets resort 696 6475 96 6571 582237 9696 5919333 SPA Hotel Devin Devin 107 1236 54 1290 235400 5454 2408544 Hotel Finlandia Pamporov resort 155 1791 91 1882 341000 9211 3502115 Hotel Hajtani Hisarya 55 635 19 655 121000 1939 1229396 Hotel Piri Bansko 110 1271 42 1313 242000 4242 2462427 Hotel Zarenitsa Narechenski bani 55 635 22 657 121000 2182 1231828 Hotel Rodopski dom Chepelare 86 993 43 1037 189200 4363 1935639 Hotel Al Max Blagoevgrad 70 809 26 835 154000 2666 156666

10 Hotel Edelvais Bansko 66 762 34 796 145200 3394 14859411 Hotel Borovets Borovets resort 545 5070 50 5121 343350 5090 34844012 Hotel Alpin Borovets resort 390 3628 43 3671 245700 4363 25006313 Hotel Rila Borovets resort 620 5768 53 5821 390600 5333 39593314 Hotel Kamengrad Panagyurishte 50 578 16 594 110000 1616 111616

Total: 834 9635 2251 20940.94 614 31189 1834800 1561887 61974 3458661

No. LocationLight Fuel Oil Natural Gas

Energy Costs for Heating and DHW without VATEnergy Consumption for Heating and DHW

Hotel

Allocation of Energy Consumption, MWh/yr.

30.9%

67.1%

2.0%

Light Fuel Oil Natural Gas Electricity

Feasibility Study in the Hotel’s Complexes (2011-2013)

Allocation of Energy Consumption

Allocation of Energy Costs, BGN/yr.

53.0%

45.2%

1.8%

Light Fuel Oil Natural Gas Electricity

Feasibility Study in the Hotel’s Complexes (2011-2013)

Allocation of Energy Costs

(МWh/yr.) (BGN/yr.) (t/yr.) (BGN/yr.) (BGN/yr.) (BGN/yr.) (BGN) (yr.)1 Alexander SPA Hotel Bansko 948 178424 413 49578 1939 126906 426684 3.42 Hotel Samokov Borovets resort 6571 591933 2863 343574 7757 240602 792445 3.33 SPA Hotel Devin Devin 1290 240854 562 67456 4363 169035 580544 3.44 Hotel Finlandia Pamporov resort 1882 350211 820 98395 7369 244447 846814 3.55 Hotel Hajtani Hisarya 655 122939 285 34226 1551 87162 294560 3.46 Hotel Piri Bansko 1313 246242 572 68641 3394 174208 551357 3.27 Hotel Zarenitsa Narechenski bani 657 123182 286 34352 1745 87085 269361 3.18 Hotel Rodopski dom Chepelare 1037 193563 452 54207 3491 135866 414680 3.19 Hotel Al Max Blagoevgrad 835 156666 364 43663 2133 110870 392479 3.510 Hotel Edelvais Bansko 796 148594 347 41624 2715 104255 345487 3.311 Hotel Borovets Borovets resort 5121 348440 2231 267739 4072 76629 358436 4.712 Hotel Alpin Borovets resort 3671 250063 1600 191966 3491 54607 242309 4.413 Hotel Rila Borovets resort 5821 395933 2536 304347 4266 87320 395803 4.514 Hotel Kamengrad Panagyurishte 594 111616 259 31039 1293 79284 290872 3.7

Total: 31189 3458661 13590 1630807 49579 1778275 6201830 3.6

Pay-Back Period

Wood Chips Costs for

Heating and DHW, without

VAT

Electricity Cost for Own Needs

Annual Savings

Investments, without VATNo. Hotel Location

Energy Consumption for Heating and DHW

Energy Costs for Heating and DHW

Wood Chips Consumption

Feasibility Study in the Hotel’s Complexes (2011-2013)

Annual project savings, investments and pay-back period

As a hotel owner, what can I do to reduce my energy consumption?

Prepare an energy audit and business plan; Involve professional engineering company; Improve equipment and systems efficiency; Protect the building from climate conditions and changes; Involve your staff in the processes.

Improve an energy management:

Assess the energy profile of your hotel at any time; Draw up a simple energy plan (policy); Adopt good housekeeping practices; Ensure regular servicing and maintenance of your equipment and system; Improve energy management by providing information to staff and guests.

Hotel Samokov, Borovets Resort

Samokov hotel is located in the resort of Borovets, 1300 m altitude. The complex is built on an area of 20,335 m2. Eleven store building in alpinestyle, includes 250 standard rooms, 11 deluxe rooms and 4 suites, restaurantsand bars, administrative offices, congress center with eight rooms,

an indoor pool, sauna, solarium, steam bath, gym and more.

Hotel Samokov, Borovets Resort

Hotel Samokov, Borovets Resort

Supply and installation of hot water boilers using wood chips with total thermal input of 2.6 MW (2 unit x 950 kW + 1 unit x 700 kW)

Hotel Samokov, Borovets Resort

Hotel Samokov, Borovets Resort

(МWh/yr.) (BGN/yr.) (t/yr.) (BGN/yr.) (BGN/yr.) (BGN/yr.) (BGN) (yr.)

1 Hotel Samokov Borovets resort 6571 591933 2863 343574 7757 240602 792445 3.3

Energy Costs for Heating and DHW

Wood Chips ConsumptionNo. Hotel Location

Energy Consumption for Heating and DHW

Pay-Back Period

Wood Chips Costs for

Heating and DHW, without

VAT

Electricity Cost for Own Needs

Annual Savings

Investments, without VAT

Hotel Samokov, Borovets Resort

Expected Savings and Investments

Project Base Line

Electricity Total Natural Gas Electricity Total

(1000nm3/yr.) (МWh/yr.) (МWh/yr.) (МWh/yr.) (BGN/yr.) (BGN/yr.) (BGN/yr.)1 Hotel Samokov Borovets resort 696 6475 96 6571 582237 9696 591933

Energy Costs for Heating and DHW without VAT

Energy Consumption for Heating and DHW

HotelNo. LocationNatural Gas

The project business - the key to your development and success

Our options: Perform energy audits and feasibility studies of public and industrial infrastructure; Business plan and detailed design preparation; Supply of equipment and materials for turn-key project implementation; Dismantling and Installation works; Commissioning test and stat up; Warranty and service; ESCo operation (EPC, HDC, TPF).

Your benefits: Enhancing competitiveness; Reducing costs, increasing energy efficiency - economic effect; Improves the thermal comfort and environmental conditions in buildings; Ecological benefits; Increase profits; Create new jobs; Ability to finance your projects in structural funds of the EU; Establishing a long and effective partnership in the implementation of energy efficiencyand renewable energy projects.

Thank you for your attention

Nikolay VangelovERATO Holding AD

Tel.: +359 2 978 3990Fax:.: +359 2 978 0744n_vangelov@erato.bg