Background information

The National Programme for Energy Efficiency of Multi-family Residential Buildings is aimed at renovation of multi-family residential buildings through implementation of energy efficiency measures in order to provide better living conditions for citizens, thermal comfort and higher quality of living environment. Pursuant to Directive (EU) 2018/844 of the European Parliament and of the Council amending Directive 2010/31/EU, a Long-term National Strategy to support the renovation of the national building stock of residential and non-residential buildings up to 2050 has been developed (Adopted by the Council of Ministers by Protocol No 8 of 27.01.2021).

Within the Recovery and Resilience Plan, the program is transformed within the investment under procedure BG-RRP-4.024 'Support for sustainable energy renovation of housing stock - Stage II', with funding under the recovery and resilience mechanism.

Content of measure

The municipalities carry out the reception of application documents, assessment, approval, provision of financing, monitoring of the implementation of energy efficiency measures in buildings. The mayor of each municipality is responsible for the implementation of the entire process of renovation of residential buildings on its territory and for the selection of contractors under the Public Procurement Act for the implementation of the individual building works.

Eligible buildings: all multi-family residential buildings, designed before 26 April 1999, of three or more storeys with six or more separate residential units are eligible.

The eligible activities for funding are: structural restoration/reinforcement/overhaul activities; Renovation of the common parts of multi-family residential buildings (roof, facades, staircase, etc.); Implementation of energy efficiency measures that are prescribed as mandatory for the building in the energy efficiency audit.

Within the National Recovery and Resilience Plan, the approved buildings will receive up to an 80% grant. The minimum amount of funds requested for each individual investment proposal is €25,600 (BGN 50,000), and the maximum may not exceed €4,9 million (BGN 9,5 million).

Use of measure

According to the review of non-renovated residential buildings by energy performance and energy consumption , 90% of the non-renovated buildings are characterised by the worst energy performance, with energy consumption classes E, F and G. According to data from the Analysis of the National Residential Building Stock in the Republic of Bulgaria, the largest share of the existing housing stock in the country was created in the period 1960 - 1989 (52% of the occupied residential buildings and 60% of the useful floor area).

A total of 36,545 dwellings in 511 blocks in the country were renovated under the National Programme for Energy Efficiency of Multi-family Residential Buildings in 2018. The number of persons employed under the program at the end of 2018 was over 70,000.

In 2022, it is reported that activities under Programme are finalized on 99.4% of all 2,022 buildings with contracts for targeted financing. A total of 14 buildings (768 dwellings) have been commissioned for calendar year 2022. The estimated annual reduction in greenhouse gas emissions (CO2 and equivalent), including ktCO2/year savings, from the buildings commissioned in 2022 is 2.4 ktCO2/year and the estimated energy savings from the renovated residential 6,268 MWh/year.

Within the Recovery and Resilience Plan, nearly €578 million (BGN 1.13 billion) will be fully invested under the first stage of the procedure for energy renovation of the residential building stock. The Second Stage (BG-RRP-4.024) closes its call for applications at 29 February 2024.

Target groups

Workers	Businesses	Citizens
Particular professions	SMEs	Applies to all citizens

Actors and funding

Actors	Funding
National government Company / Companies Local / regional government	National funds National Recovery and Resilience Facility

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Informed	Informed
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

The social Partners didn't provide written statements abut the second stage of the program under the Recovery and Resilience Plan, according to the Reference for written objections and proposals to the draft Guidelines for application under the procedure 'Support for Sustainable Energy Renovation of the Residential Building Stock - Stage II' published for public consultation on the basis of Article 5(2) of Decree No. 114 of 8 June 2022 of the Council of Ministers laying down detailed rules for the allocation of funds to final beneficiaries under the Recovery and Sustainability Mechanism.

Views and reactions

Confederation of Independent Trade Unions in Bulgaria (CITUB) has repeatedly emphasized that Bulgaria will not achieve climate neutrality without thorough planning. CITUB expressed concern over the delay in updating INPEC, as the previously announced deadline for the first update has already passed. So far, the social partners have not participated in any preliminary consultations on revising the plan. For CITUB this is worrying, because the updated Bulgarian NPEC will have to reflect increased ambition based on a reassessment of the objectives of the PES. Also, the updated version of the NEPC will take into account the latest European legislation (Prepared for Objective 55, Recovery and Resilience Mechanism, RePowerEU). The adoption of the final Territorial Plans for Just Transition (TPSP) also depends on the updating of INPEC. The plan must be in line with the realities of the Bulgarian industry and provide sufficient transition periods for the industry to adapt to the new "green" technologies. CITUB insisted that sufficient attention be paid to the question of how to achieve a just transition to a climate-neutral economy, with the socio-economic impact clearly defined.

Bulgarian Industrial Association (BIA) sent an official statement within the public consultations of the Integrated Plan. For example, BIA accepts 'the extremely ambitious targets in relation to the achieved levels and target thresholds adopted by the EC, incl. 32% share of renewable energy in gross final energy consumption, 32.5% improvement in energy efficiency and at least 15% interconnection resulting from the ambitious targets adopted by the EU. However, these should be linked to a significant reassessment of GDP growth projections, gross and final energy consumption developments, after refining the scope and speed of substitute capacity deployment, the long-term energy mix, the share of direct and indirect subsidies as a share of GDP and other key governing parameters.' According to BIA, the adoption and implementation of INPECBG, respectively - a well-balanced and ambitious national energy strategy up to 2030 (2040/2050) is crucial for development of the Bulgarian economy in the coming decades. It should serve ambitious but achievable national targets by 2030, including a radical narrowing of the gap with the EU average in terms of income and productivity, measured as GDP per inhabitant, at the current level of around 50%. At the same time, decarbonisation of the economy, low carbon growth and the reduction of the energy intensity of the economy should be achieved at the lowest cost that is economically and socially acceptable to society and business.

Sectors and occupations

Sources

• 02 February 2015: National Program for Energy Efficiency of Multifamily Residential Buildings (www.mrrb.bg)
• 20 June 2023: Open application BG-RRP-4.024 - SUPPORT FOR SUSTAINABLE ENERGY RENOVATION OF THE RESIDENTIAL BUILDING FUND - STAGE II (eumis2020.government.bg)
• 22 December 2023: 756 blocks have been approved for remediation under the Recovery and Resilience Plan (www.mrrb.bg)
• 31 December 2023: Update on program progress (www.mrrb.bg)
• 22 January 2024: National program for energy efficiency of multi-family residential buildings (www.strategy.bg)