Developing seamless services for housing renovation
Bulgaria is supporting Europe’s transition toward a climate-neutral region through an ambitious initiative to renovate its residential buildings. The move will help the country move from an energy efficiency retrofitting system based on multifamily buildings to a market-oriented model. The SHEERenov project has developed and tested a new model for the provision of residential renovation services in Sofia. The team identified various obstacles and opportunities, to create the conditions necessary to attract both public and private entities involved in energy efficiency renovation. “The innovative aspect of our model lies in its ability to attract private investments by using public finance as a catalyst,” explains Yordan Zdravkov, tech transfer and commercialisation expert at Cleantech Bulgaria, and part of the SHEERenov project coordinator team. “Public funds are to be utilised to provide guarantees or subsidies, which in turn mitigate the risks associated with private investments,” he adds. This strategy was designed to not only ensure the availability of financial resources for renovation projects but also encourage the participation of private financial institutions. “The SHEERenov model incorporates a holistic approach, including technical assistance, financial advisory services and project implementation support, thereby facilitating a seamless process for building owners and residents,” says Zdravkov.
Uncovering market obstacles and stakeholder aims
To identify the major obstacles and requirements for attracting relevant market stakeholders, SHEERenov used a multifaceted approach including detailed situation analyses, stakeholder surveys and reviewing best practices from across Europe. The project team engaged in a series of workshops, meetings and consultations with a wide range of stakeholders, including homeowners, business entities, financial institutions and local authorities. They also assessed the current market conditions, regulatory environment and financial mechanisms related to energy efficiency retrofitting.
Developing a ‘one-stop shop’ concept
Energy efficiency renovation of multifamily residential buildings is complex, and requires a wide range of expertise and professional competences, including technical, legal, economic and organisational, which condominium co-owners do not typically possess. SHEERenov’s analysis showed the need for the inclusion of a ‘specialised intermediary’, professional management companies and energy efficiency consultants able to handle these tasks. In this way, professional building managers can deal with homeowners, while the specialised intermediary provides services to improve energy performance. “This ‘one-stop shop’ system devised by the project represents an innovative solution designed to support everyday citizens in the renovation of their homes, streamlining the renovation process and making it more accessible and efficient for homeowners,” notes Zdravkov.
INSPIRing future work
Through their innovative work, SHEERenov became a focal point for innovation and reforms in the Bulgarian renovation sector, extending well beyond the project goals and becoming a vital part in the long-awaited reform in the sector. The team successfully laid the foundation for a market model of housing renovation financing. After its test phase, the one-stop shop concept was integrated into the national recovery and resilience plan (NRRP) of Bulgaria. “The capacity built among the public authorities, companies and citizens will actively support the upcoming campaign for the renovation of multifamily residential buildings,” adds Zdravkov. The work continues under the INSPIRenov project. This aims to develop financial instruments and commercial bank products for the energy-efficient renovation of residential buildings in Bulgaria, and will introduce a new blended financing scheme to provide access to private financing for large-scale energy efficiency renovation.
Keywords
SHEERenov, renovation, Bulgaria, residential, homes, one-stop shop, system, solution, management, private, public, funding
