Periodic Reporting for period 2 - SHEERenov (Seamless services for Housing Energy Efficiency Renovation)
Okres sprawozdawczy: 2021-08-01 do 2022-09-30
SHEERenov objective was to develop and test a model for the provision of integrated residential renovation services. The implementation of the project aimed to support the Bulgarian Government's intended transition from existing multifamily buildings energy efficiency renovation model, financed fully from public resources and administered entirely by public institutions, to a market-oriented model. Based on an in-depth analysis of barriers and identified needs, SHEERenov created the enabling conditions to attract and facilitate participation of relevant market stakeholders and players in the process of energy efficiency renovation in the residential sector: i.e. homeowners, business, financial sector. The ambitious purpose of the project was to use good and proven European practices in order to support a multi-dimensional impact in terms of creating a new system to provide integrated home renovation services with standardised and optimised procedures.
Key Objective (KO): Create enabling conditions, to attract and facilitate participation of market stakeholders in the process of EE renovation of in the residential sector - owners, business and financial sector.
1) The project established a new entity in renovation processes – the specialised intermediary - a business partnership between a Professional House Manager and a Company registered as an energy efficiency service provider, which jointly can provide the required seamless services for energy efficiency renovation.
2) Attracting and facilitating the inclusion of homeowners was done through carrying out Open Days in the 8 participating district municipalities in 2021 and 2022.
3) Commercial banks and financial institutions were involved in the process of developing the MVP and as a result the Bulgarian Development Bank joined the project as an associated partner, acknowledging the value of the developed approach in bringing a market-based EE renovation financing in Bulgaria.
KO: Identify European best practices, with focus on applicability to establish a sustainable market based Bulgarian model
1) Identified multiple good European practices. The most suitable were selected and further tailored to fit the Bulgarian environment. In the end conditions for transfer of good European practices and relevant knowhow into Bulgaria were created.
KO: Development of a concept for a new financing model. The comprehensive financing model will include: (a conditional) grant part, MVP of a financial product for loans to Condominiums and Targeted support from municipality.
1) The concept of the new financing model was elaborated as a combination of lessons from the identified best practices, the expertise of the international partners and the specifics of the Bulgarian EE sector. The concept was developed with all relevant stakeholder groups on board. Based on the work under the project, it was confirmed without a doubt, that from the discussed and deemed as possible financial models to support the renovation of multifamily residential buildings in Bulgaria, the final three-component approach of SHEERenov is the most applicable and versatile: grants, self-participation supported by a financial mechanism and additional assistance for socially vulnerable owners. In summary, the multiplier potential of the model is identified as a basis for a large-scale renovation process of multi-family residential buildings in Bulgaria.
KO: Support for the development of local renovation policies in the residential sector
1) Local authorities’ capacity was improved in line with their foreseen new role in the process or home renovation and as a part of the comprehensive support for homeowners. Under the NRRP municipalities will be again a key factor the successful implementation of EE renovation projects on local level. Motivated and trained experts are vital for the organisation of the renovation process on local level.
KO: Developing of a of pipeline for renovation of MFB for energy efficiency
1) The selected buildings were later supported with the provision of EE services on the spot. While acknowledging the fact that the availability of a pipeline of buildings ready to apply for financing is a key factor for accelerating the rate of EE renovation, the lessons learnt from the SHEERenov implementation have confirmed that the process of developing the pipeline is time consuming and requires a tailored approach.
1) The project established a new entity in renovation processes – the specialised intermediary - a business partnership between a Professional House Manager and a Company registered as an energy efficiency service provider, which jointly can provide the required seamless services for energy efficiency renovation.
2) Attracting and facilitating the inclusion of homeowners was done through carrying out Open Days in the 8 participating district municipalities in 2021 and 2022.
3) Commercial banks and financial institutions were involved in the process of developing the MVP and as a result the Bulgarian Development Bank joined the project as an associated partner, acknowledging the value of the developed approach in bringing a market-based EE renovation financing in Bulgaria.
KO: Identify European best practices, with focus on applicability to establish a sustainable market based Bulgarian model
1) Identified multiple good European practices. The most suitable were selected and further tailored to fit the Bulgarian environment. In the end conditions for transfer of good European practices and relevant knowhow into Bulgaria were created.
KO: Development of a concept for a new financing model. The comprehensive financing model will include: (a conditional) grant part, MVP of a financial product for loans to Condominiums and Targeted support from municipality.
1) The concept of the new financing model was elaborated as a combination of lessons from the identified best practices, the expertise of the international partners and the specifics of the Bulgarian EE sector. The concept was developed with all relevant stakeholder groups on board. Based on the work under the project, it was confirmed without a doubt, that from the discussed and deemed as possible financial models to support the renovation of multifamily residential buildings in Bulgaria, the final three-component approach of SHEERenov is the most applicable and versatile: grants, self-participation supported by a financial mechanism and additional assistance for socially vulnerable owners. In summary, the multiplier potential of the model is identified as a basis for a large-scale renovation process of multi-family residential buildings in Bulgaria.
KO: Support for the development of local renovation policies in the residential sector
1) Local authorities’ capacity was improved in line with their foreseen new role in the process or home renovation and as a part of the comprehensive support for homeowners. Under the NRRP municipalities will be again a key factor the successful implementation of EE renovation projects on local level. Motivated and trained experts are vital for the organisation of the renovation process on local level.
KO: Developing of a of pipeline for renovation of MFB for energy efficiency
1) The selected buildings were later supported with the provision of EE services on the spot. While acknowledging the fact that the availability of a pipeline of buildings ready to apply for financing is a key factor for accelerating the rate of EE renovation, the lessons learnt from the SHEERenov implementation have confirmed that the process of developing the pipeline is time consuming and requires a tailored approach.
SHEERenov managed to surpass the planned scope of its objectives in several ways:
• Even though the project was originally launched and tested in Sofia, Bulgaria, the COVID-19 pandemic and the development of National Recovery and Resilience Plans (NRRP) for member-states gave SHEERenov the opportunity to extend its effect greatly by being a key project in several planned reforms in the NRRP of Bulgaria. One such reform concerns the establishment of one-stop-shop units supporting the EE renovation of buildings, where the central and local administrations will use the products and tools developed under the SHEERenov project, the experience gained, as well as the lessons and recommendations from the implementation of SHEERenov when structuring the one-stop service model on a national level. This was done fully in line with the objective of MS7 of SHEERenov, thus the project not only achieved this major step, but solidified the result as a planned reform on national level.
• Another important aspect, again related directly to the national NRRP is the aim to develop solutions that transform the existing model of providing 100% grant for residential building owners into a sustainable mechanism with the active participation of owners, business, and local authorities. The concept of this new financial model was based on the developed market-based model under SHEERenov and was then further developed and adapted to the current strategic framework and funding opportunities by the second half of 2022.
• SHEERenov’s recommendations for necessary legislative amendments were used by MRDPW as a basis for amending the CMA within the planned NRRP Reform “Facilitating and increasing the efficiency of energy efficiency investments in multi-family residential buildings”. Furthermore, a new chapter regarding regulation of the professional management was developed under the project. The amendments have passed the inter-ministerial endorsement procedure and have been submitted to the Parliament. Adoption is expected by the end of 2022.
• The project made a valuable contribution to the NRRP Reform concerning the development of a definition for energy poverty by amending the Energy Act. SHEERenov in cooperation with a team from the Bulgarian Academy of Science prepared a ‘Methodology for Identification of Energy Poor Households in Bulgaria’. The proposed methodology provides mechanism for determining those entitled to receive additional targeted financial support under the third component of the financing model. The methodology is formalized in a secondary legislation act which adoption is expected by the end of 2022.
The biggest Socio-economic of the project can be summarised as Contribution to mitigation of household energy poverty - facilitating behaviour change, through awareness and capacity improvement activities; setting-up financing model and non-financial support taking into consideration the social and financial status of the insolvents, which will broaden up the potential of the beneficiaries of the renovation.
• Even though the project was originally launched and tested in Sofia, Bulgaria, the COVID-19 pandemic and the development of National Recovery and Resilience Plans (NRRP) for member-states gave SHEERenov the opportunity to extend its effect greatly by being a key project in several planned reforms in the NRRP of Bulgaria. One such reform concerns the establishment of one-stop-shop units supporting the EE renovation of buildings, where the central and local administrations will use the products and tools developed under the SHEERenov project, the experience gained, as well as the lessons and recommendations from the implementation of SHEERenov when structuring the one-stop service model on a national level. This was done fully in line with the objective of MS7 of SHEERenov, thus the project not only achieved this major step, but solidified the result as a planned reform on national level.
• Another important aspect, again related directly to the national NRRP is the aim to develop solutions that transform the existing model of providing 100% grant for residential building owners into a sustainable mechanism with the active participation of owners, business, and local authorities. The concept of this new financial model was based on the developed market-based model under SHEERenov and was then further developed and adapted to the current strategic framework and funding opportunities by the second half of 2022.
• SHEERenov’s recommendations for necessary legislative amendments were used by MRDPW as a basis for amending the CMA within the planned NRRP Reform “Facilitating and increasing the efficiency of energy efficiency investments in multi-family residential buildings”. Furthermore, a new chapter regarding regulation of the professional management was developed under the project. The amendments have passed the inter-ministerial endorsement procedure and have been submitted to the Parliament. Adoption is expected by the end of 2022.
• The project made a valuable contribution to the NRRP Reform concerning the development of a definition for energy poverty by amending the Energy Act. SHEERenov in cooperation with a team from the Bulgarian Academy of Science prepared a ‘Methodology for Identification of Energy Poor Households in Bulgaria’. The proposed methodology provides mechanism for determining those entitled to receive additional targeted financial support under the third component of the financing model. The methodology is formalized in a secondary legislation act which adoption is expected by the end of 2022.
The biggest Socio-economic of the project can be summarised as Contribution to mitigation of household energy poverty - facilitating behaviour change, through awareness and capacity improvement activities; setting-up financing model and non-financial support taking into consideration the social and financial status of the insolvents, which will broaden up the potential of the beneficiaries of the renovation.