We work with all types of stakeholders on the journey to building renovation. Discovering who are the stakeholders in this project remains a key objective in this project as we tailor our message and platform development to meet the stakeholders needs. We aim to reach stakeholders through social media and marketing campaigns, as well as events, meetings and workshops during the duration of this project. This will increase our reach to a global audience.
Stakeholders find out if their building qualifies for building renovation by contacting us and learning more about the FinEERGo-Dom project. We ensure that everyone has the needed information.
Now we have created a relationship among stakeholders. The interactions shift to in-person meetings. In-person interactions still are an integral part of project development, as the SHAREX platform masters data handling but building community and trust still requires person to person interaction.
Building renovation has occurred and now we must ensure that the user is satisfied with the results. The platform handles data management and analysis, making it simple for a user to login and, depending on the type of user, have access to certain data and information.
Here is an example of what a project might look like from beginning to end, securing financing, interacting with stakeholders and using SHAREX.
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FinEERGo Dom in Europe
FinEERGo-Dom is an ambitious 4-year project that refines and implements guaranteed financing schemes for energy efficiency and renewable energy in deep renovations of buildings in Poland, Austria, Slovakia, Romania, and Bulgaria. The project builds on the experience of the Latvian Building Energy Efficiency Facility (LABEEF), the original Building Energy Efficiency (BEEF) Facility deployed successfully in Latvia. LABEEF is based on an existing example providing 20 year Guaranteed Performance contracts to owners through an On-Bill payment scheme.
Where does this fit in?
At the EU level, the building stock represent an important aspect in the overall European energy efficiency strategy. The Energy Performance in Buildings Directive (EPBD, 2010/31/EU) through EU Directive 2018/844/EU, emphasizes the exemplary role of public bodies’ buildings. It requires a renovation strategy to be integrated into the NEEAPs (EED, article 4). EU member states must establish long-term renovation strategies to support the renovation of the national stock of buildings, including residential and non-residential. This is the FinEERGo-Dom team’s core objective through the implementation of a successful financing scheme beginning in Eastern Europe. Eastern Europe’s own building stock suffers from deficient maintenance and a lack of energy efincency as until the ’90s energy was either free or very cheap. There are over 3 billion square meters of MFB built on a similar basis allowing for standardization and scale.
How we do it?
Creating the financial ecosystem for building renovations to occur requires trust, communication and transparency among the diverse stakeholders.
The Building Energy Efficiency Facility (BEEF) aligns stakeholders’ interests on the real needs for safety, health, comfort and affordablity through our use of the multi-stakeholder platform SHAREX. The main aim of the platform is to standardize the process of managing energy efficiency investment projects by managing the multiple stakeholders involved.
This allows for the agile collaboration between different stakeholders on the different levels and stages of an Energy Efficiency Project.
There are strong positive forces, starting to create momentum on the Bulgarian energy efficiency market, shaping a promising trend and outlining opportunities that the advanced market players in the ecosystem are taking steps to seize and build on, structuring sophisticated teams and innovative business models. Still, there is a great appetite for grant resources on the client side, both public and private, resulting in passivity even in cases when the cost of waiting for “free” money is greater than a potential ESCO contract.
Recent changes in the Energy Efficiency Act oblige local energy traders to realize energy savings that should amount cumulatively by the end of 2020 to 2 772 GWh. The scheme will be prolonged till 2030 and talks are on the table for even further extension, which guarantees a multibillion market for energy efficiency in Bulgaria. Additionally, the same Act sets obligations on the client side, bringing tens of millions sq. meters to the market for realization of energy efficiency measures. For example, public buildings stock is nearly 20 million sq. meters and has to improve every year in terms of energy efficiency parameters (Figure 2). Another strong market force follows the Government policy to provide 100% financial support for renovation of the multifamily buildings stock, which is estimated to be 117 million sq. meters. In such constellation, having in mind that the main competitor to market instruments is gradually disappearing (grants), it’s the ESCO that will have the best chance to become the main enabler for realization of energy efficiency policy and for fulfilling the national energy savings obligations. In that respect, the Sustainable Energy Development Agency (SEDA) is very active by organizing campaigns throughout the country for popularization of ESCO business models, benefits of energy management and best practices. Recently, ESCO contract examples to be used by the ecosystem have been developed by SEDA, as well as a marketplace for projects is on the way in partnership with the Alliance for Energy Efficiency (organization of ESCO companies).
A very positive new development is the open data policy by SEDA, allowing for identification and allocation of investment ready energy saving possibilities owing to the Enerfund project. At this stage over 5 000 energy audits are registered, prescribing investments of nearly 800 million euro.
On the flip side, a lot remains to be done in terms of communication, training and persuasion so that clients build enough confidence in advanced market-based instruments for energy efficiency realization and convince themselves that grants won’t come back. To add to the list, there are ambiguities due to over-regulation and misunderstanding in the public sector which makes the ESCO contracts vulnerable to obstructions. Lastly, the access to capital for energy efficiency is still comparable with that of “standard financing” which sets a lower priority to these kind of projects in the clients’ and ESCO companies’ agendas. Thankfully, Fund Manager of Financial Instruments in Bulgaria (FMFIB) has started to provide guarantees, but the scale and parameters are still falling behind the challenges in the sector.