Periodic Reporting for period 2 - BeSMART (Bulgarian Energy Efficiency Forum on Smart Finance for Smart Buildings)
Reporting period: 2022-11-01 to 2024-04-30
Bulgaria is facing a serious challenge to radically transform its extremely grant-dependent energy efficiency support schemes, while at the same time preserving the speed and scope of the clean energy transition. This is especially valid for the residential sector, where the existing 100% grant mechanism for building renovation has to be quickly reformed into a sustainable financing scheme, at the same time targeting more ambitious energy targets and taking into account the overspread energy poverty. Considering the principles of functioning of the EU Green Deal and the possibilities under the Recovery Package, innovative financial instruments have to be quickly designed and adopted in a transparent and inclusive way, significantly improving the leveraging effect of public resources, while at the same taking into account the limited investment capacities and purchasing power of the consumers.
To address these policy and market gaps, BeSmart aimed to support smart financing implementation by setting up a permanent discussion forum, gathering central and local authorities, energy efficiency experts, the financial sector, ESCOs, homeowners, industry, construction and SME sector representatives. The 9 roundtables and the final conference organised under the project were specifically designed to support new business models and utilize investment opportunities derived from the increased financing for energy efficiency and renewable energy at EU level. As a result, they supported the development of national and local-level strategies as e.g. the National Recovery and Resilience Plan and the National Energy and Climate Plan, proposed improvements in the national policy framework and implementation programmes, developed concrete recommendations for regulatory amendments and introduction of new financing schemes, and ultimately, increased the transparency in the policy-making process, leading to increased trust of the investors and better functioning of the market.
To address these policy and market gaps, BeSmart aimed to support smart financing implementation by setting up a permanent discussion forum, gathering central and local authorities, energy efficiency experts, the financial sector, ESCOs, homeowners, industry, construction and SME sector representatives. The 9 roundtables and the final conference organised under the project were specifically designed to support new business models and utilize investment opportunities derived from the increased financing for energy efficiency and renewable energy at EU level. As a result, they supported the development of national and local-level strategies as e.g. the National Recovery and Resilience Plan and the National Energy and Climate Plan, proposed improvements in the national policy framework and implementation programmes, developed concrete recommendations for regulatory amendments and introduction of new financing schemes, and ultimately, increased the transparency in the policy-making process, leading to increased trust of the investors and better functioning of the market.
In the beginning of the activities, the project team has established the analytical foundation of the actions, developing a coherent and comprehensive stakeholders’ mapping using the networks of all 11 project partners. In parallel, a comprehensive analysis of the energy efficiency policies and instruments towards 2020, encompassing 12 major national plans and programs related to supporting EE investments in Bulgaria was performed. An in-depth analysis of the European best practices in strategic planning and design of financial support instruments was also performed, focusing on the applicability of specific products of international financing facilities and optimal use of the EU investment programmes.
Despite the COVID-related restrictions, the political insecurity and the lack of stable government in Bulgaria within the entire project duration, a coherent strategy for the organization, timing and design of the roundtables events was adopted and rigorously applied. Within this process, synergies with external initiatives and events were thoroughly utilized, as for example with the parallel SMAFIN roundtables, the annual gatherings of the Association of the Bulgarian Energy Agencies, the public consultations on the National Energy and Climate Plan, the setting up of the National Decarbonisation Fund. Additionally, partnerships with high visibility local actions were initiated, as the annual conferences of the Municipal Energy Efficiency Network EcoEnergy and the traditional nZEB Days in Burgas. With all key developments and external events taken into account, 9 roundtables and 1 final conference were scheduled and successfully organized in hybrid format, allowing the participation of the desired speakers even in cases of limitations regarding physical attendance. The roundtables attracted actors all over across the energy and financial sectors, with representatives from all public funds, the biggest commercial banks and the major international financing institutions taking part as speakers at the events. The high-level attendance of governmental representatives, on its turn, attracted increased media attention, with more than 300 publications evidenced. Thus, the events are considered as very successful, attracting 1310 on-site and online participants and resulting in development of a highly informed and engaged group of practitioners.
The conclusions of the events were documented in extensive proceedings in Bulgarian and English (available on the website of the BeSmart project). Based on the preliminary planning and the roundtable discussions, 4 technical working groups were formed and working under the coordination of AEE. As a result, 10 policy recommendations were developed and disseminated to the relevant institutions:
1. Establishing an interactive national ESCO register
2. Creation of a working segment to the NDF with the capacity to interact with innovative models for the implementation of EE/RED projects of the ESCO type
3. Introduction of regulations that ease the financial burden on the citizen when programming the NRRP in the project for renovation of multi-family residential buildings
4. National roadmap for renovation of multifamily residential buildings
5. ESCO programmes with subsidies - best practices from Central and Eastern Europe and recommendations for Bulgaria
6. Update of Ordinance 16-347 of 2009 (The ESCO ORDINANCE) – Introduction of best EU practices
7. Proposal to Upgrade the Envisaged ESCO mechanism in NRRF STAGE II - Concept for a pilot ESCO programme
8. Upgrading and Improving the National Policy and Regulatory Framework for Energy Communities
9. Alignment of EE projects with the international framework for investments with social impact
10. Establishment of a permanent renovation program for residential buildings (without a 100% grant component)
Despite the COVID-related restrictions, the political insecurity and the lack of stable government in Bulgaria within the entire project duration, a coherent strategy for the organization, timing and design of the roundtables events was adopted and rigorously applied. Within this process, synergies with external initiatives and events were thoroughly utilized, as for example with the parallel SMAFIN roundtables, the annual gatherings of the Association of the Bulgarian Energy Agencies, the public consultations on the National Energy and Climate Plan, the setting up of the National Decarbonisation Fund. Additionally, partnerships with high visibility local actions were initiated, as the annual conferences of the Municipal Energy Efficiency Network EcoEnergy and the traditional nZEB Days in Burgas. With all key developments and external events taken into account, 9 roundtables and 1 final conference were scheduled and successfully organized in hybrid format, allowing the participation of the desired speakers even in cases of limitations regarding physical attendance. The roundtables attracted actors all over across the energy and financial sectors, with representatives from all public funds, the biggest commercial banks and the major international financing institutions taking part as speakers at the events. The high-level attendance of governmental representatives, on its turn, attracted increased media attention, with more than 300 publications evidenced. Thus, the events are considered as very successful, attracting 1310 on-site and online participants and resulting in development of a highly informed and engaged group of practitioners.
The conclusions of the events were documented in extensive proceedings in Bulgarian and English (available on the website of the BeSmart project). Based on the preliminary planning and the roundtable discussions, 4 technical working groups were formed and working under the coordination of AEE. As a result, 10 policy recommendations were developed and disseminated to the relevant institutions:
1. Establishing an interactive national ESCO register
2. Creation of a working segment to the NDF with the capacity to interact with innovative models for the implementation of EE/RED projects of the ESCO type
3. Introduction of regulations that ease the financial burden on the citizen when programming the NRRP in the project for renovation of multi-family residential buildings
4. National roadmap for renovation of multifamily residential buildings
5. ESCO programmes with subsidies - best practices from Central and Eastern Europe and recommendations for Bulgaria
6. Update of Ordinance 16-347 of 2009 (The ESCO ORDINANCE) – Introduction of best EU practices
7. Proposal to Upgrade the Envisaged ESCO mechanism in NRRF STAGE II - Concept for a pilot ESCO programme
8. Upgrading and Improving the National Policy and Regulatory Framework for Energy Communities
9. Alignment of EE projects with the international framework for investments with social impact
10. Establishment of a permanent renovation program for residential buildings (without a 100% grant component)
Within the process BeSMART’s implementation and the establishing the national discussion forum, the project team has documented a mosaic of experiences for different institutional and civil society stakeholders, interested in the continuation of the sustainable energy financing discussion forums in Bulgaria. It is suggested that this guidance would be used not only in the SMAFIN Expanded project, which will organise 3 additional roundtable events in the coming years, but also by the Ministry of Energy, expected to lead the national activities under the European Energy Efficiency Financing Coalition, established by the EC to continue and institutionalise the dialogue on the topic. In addition, all project partners will continue to engage in advocacy efforts for enhancement of sustainable energy financial instruments, based not only on the explicit recommendations developed by the project, but also on the extraordinary experience and networking, which will carry their benefits for the policy making process in Bulgaria for years to come.