Bulgaria to use EUR 1.5 billion from EU recovery fund for energy efficiency

In the draft National Recovery and Resilience Plan of Bulgaria, EUR 882.2 million is indicated for incentives for energy refurbishment of residential buildings. The entire energy efficiency segment will be worth EUR 1.53 billion, according to Minister Petya Avramova.

The government’s current support scheme for the reconstruction of multifamily homes has been suspended, but Bulgaria intends to use funds from the European Union’s Recovery and Resilience Facility to continue and expand the scope of incentives for energy efficiency. Minister of Regional Development and Public Works Petya Avramova told private news outlet bTV that EUR 1.53 billion would be earmarked for the purpose.

EU member countries must adopt national recovery and resilience plans for the period through 2026 to become eligible for financing. Bulgaria published its draft late last month.

Majority of funds intended for residential sector

Avramova noted single-family homes, industrial, public and municipal buildings and street lighting have been included. The majority share, EUR 882.2 million, is for residential buildings, to be upgraded to energy class B or A.

The guidelines for application are being prepared and the program will be expanded to renewable energy systems, the minister added. The old scheme was only for the insulation of roofs and external walls and window replacement.

The government wants to allocate EUR 2.24 billion from the planned EUR 6.15 billion to the Green Bulgaria pillar, which includes energy efficiency

The Recovery and Resilience Facility, part of the European Green Deal, is worth EUR 672.5 billion. It is intended for addressing the economic and social consequences of the COVID-19 pandemic and making public systems and the economy more shock-resistant.

The Green Bulgaria pillar, one of four in the EUR 6.15 billion draft, is estimated at EUR 2.24 billion. The energy efficiency program is actually predicted to be worth EUR 1.47 million, according to the document published by the government of Bulgaria. It was listed within the segment of Green Bulgaria for circular economy and low-carbon development, of EUR 1.73 billion.

EU scheme complements national incentives program

Priority in the residential segment will be given to sites and buildings that got approval under the national program for energy efficiency in multifamily homes and the domestic operational program Regions in Growth 2014-2020, the draft reads. Funds in the scheme have been depleted.

Administrative structures will account for 70% of the EUR 213.1 million that was earmarked for energy renovation of governmental and municipal buildings. The remainder will be split between sports and infrastructure.

The third component, EUR 144.1 million, is indicated for industrial buildings, leaving EUR 230.9 million for outdoor lighting, the draft reveals.