Energy transformation requires sustainable market models and decentralization of financing

On the 23rd and 24th of April, the 25th Annual Conference of the Municipal Network for Energy Efficiency EcoEnergy on the topic "Opportunities for local authorities to implement sustainable energy projects" was held in the "Chiflika" complex, Municipality of Troyan, as well as the closing event under the BeSMART project. The forum was followed by a roundtable "Exiting the Vicious Circle: A Long-Term Vision for Bulgaria's Decarbonization and Economic Transformation", jointly organized by EnEffect, the Center for the Study of Democracy and "For the Earth" on 25 April in Sofia, with the three events attracting representatives of leading institutions, municipalities and organizations with shared interests in the field of sustainable energy such as the Ministry of Regional Development and Public Works (MRDPW), the Ministry of Energy (ME) and the Agency for Sustainable Energy Development (ASED).

In the conditions of political instability and parliamentary decisions giving conflicting signals to the market of sustainable energy projects, the participants united around the thesis of the need for policy consistency and guaranteeing the financial resource for the implementation of the projects at the local level. The campaign in the application of the financial mechanisms, the ineffective reforms of the NRSP and the lack of clear and consistent communication were highlighted as the main reasons for the insufficient engagement of citizens and businesses. On the other hand, changes in European directives and the introduction of innovative approaches such as energy management, building automation, energy communities and circular models in construction are the basis for developing attractive business models with the potential to attract more and more participants in the energy transformation. In this perspective, from the implementation of the building renovation program and the received over 300 applications for participation, it is clear that, despite the missing tools and negative media messages, an increasing part of society is ready to get involved with their own funds - especially where it is provided expert advice and technical assistance.

In response to these challenges, Tanya Hristova, Mayor of the Municipality of Gabrovo, confirmed the intention of EcoEnergy to continue to actively defend the position of consistency of policies and provision of financial resources to fulfill the commitments made to the citizens in the mode of transition to a sustainable project financing system for energy efficiency.

Nikolay Rajkovski, Deputy Mayor of Troyan Municipality, focused on the municipality's successful practices for renovating buildings, including administrative buildings, schools and kindergartens. The importance of building professional capacity and market orientation in the construction sector is emphasized.

In his speech at the conference, Dobromir Vasilev, director of the "Housing Policy" directorate at the Ministry of Urban Development, told about the attempt to change the trajectory of building renovation. Thanks to the close cooperation of the Ministry of Regional Development with the World Bank team, models have been developed especially for Bulgaria, which can be successfully implemented in the mode of project co-financing.

Ivaylo Alexiev, executive director of ASED, announced that the full package of directives on energy efficiency, energy performance of buildings and renewable energy has been adopted. In parallel, the liberalization of household energy prices and the inclusion of buildings and transport in an emissions trading scheme will lead to an increasing need to increase energy efficiency. Thus, buildings must achieve net zero emissions, and unfortunately in Bulgaria we are still far from these requirements. The need for information and awareness, as well as technical assistance, is key to the successful implementation of quality projects, as buildings are an intersection between energy efficiency policies and renewable energy.

During the final conference of the BeSMART project, the importance of developing specialized banking products for financing energy efficient projects was also discussed. Although major banks already offer various financing options for new construction, special attention needs to be paid to the renovation of existing buildings. For municipalities that develop their own energy efficiency projects, there are already specialized products offered by the FLAG Fund, NDEF and FEEVI, but accessible and timely information on financing and technical support is needed for their implementation.

In this aspect, it was discussed that the leading priority is to achieve an improvement in the quality of the construction product, taking into account the overall impact of buildings on the environment and their functionality and to ensure real achievement of the expected energy savings. To this end, it is necessary to constantly invest in the training, knowledge and skills development of designers and contractors in the construction sector. At the forum, it became clear that the Chamber of Architects and the Chamber of Builders in Bulgaria are actively engaged in raising the qualifications of their members in the field of sustainable energy. Participation in the sector councils on skills and the creation of various training programs is an essential element of the organizations' strategy. In addition, they are working towards the integration of new technologies and processes in the construction sector, striving for more productive and sustainable practices, which will be reflected in the new roadmap for improving knowledge and skills in construction under the BUILD UP Skills project.

"The acquisition of knowledge and skills for professional qualification and technological innovation must continue throughout life in order to achieve sustainable development," emphasized Dragomir Tsanev, executive director of the Center for Energy Efficiency EnEfect. "In the face of a demographic crisis, we must learn to do more with fewer people, but it is these technological innovations that will develop the new business models that will transform the Green Deal from a political cliché into a tool for economic development."

Center for Energy Efficiency EnEfect is a non-governmental non-profit organization founded in 1992 in Sofia, Bulgaria. Through intensive participation in international and national initiatives to improve energy efficiency, EnEfect has been supporting the efforts of the Bulgarian central and local authorities and the private sector for sustainable energy development for more than 30 years. Currently, EnEffect acts as the secretariat of the Municipal Network for Energy Efficiency EcoEnergy, and as part of the international consortium EEE (Econoler – EnEffect – Elana) manages the Bulgarian Fund for Energy Efficiency and Renewable Sources, created with the support of the Global Environmental Fund, the World Bank and the Bulgarian government.