Funding for a new energy efficiency programme is secured, but the rules for its implementation are still being defined

On March 27, 2025, the conference “Financing for Energy Efficiency, Digitalisation and Skills” took place at Inter Expo Center, organized by the Center for Energy Efficiency EnEffect, the Bulgarian Construction Chamber, the Renovate Bulgaria, and Cleantech Bulgaria. The forum brought together representatives from European, national, and local authorities, the private sector, NGOs, and academia to discuss the challenges and opportunities for modernising the building stock through innovation, market-based financing approaches, and the development of new skills.

“Without stable institutional mechanisms, we cannot achieve meaningful results in building renovation—we need consistency, a commitment to sustainable financing, and technical support for local authorities and homeowners,” stated Dragomir Tzanev, Executive Director of EnEffect. “We need a clear structure that ensures practical implementation—with reliable rules, predictability, and active support at the local level. Right now, we have a convergence of interest in the programme and available funding from the NRRP, the national budget, and the Social Climate Fund. We must seize this opportunity to establish the National Decarbonisation Fund,” he added, stressing the urgency of coordinated action.

Deputy Minister of Regional Development and Public Works Dora Yankova announced that the second National Energy Efficiency Programme will be financed through 2030, with BGN 50 million allocated for 2025 and annual investments of up to BGN 800 million planned for the following years. She noted that the application procedures are still being developed, with a key priority placed on the active involvement of municipalities and homeowners in the renovation process. However, the implementation of NRRP projects remains a challenge for this year and next—both for Phase I with 100% state financing, and Phase II, which requires 20% homeowner co-financing. “There was confusion in the system, with concerns that buildings would be shifted to the new national programme financed from the state budget. However, we sent letters to all mayors encouraging them and homeowners’ associations to make full use of the European financial resources earmarked for housing renovation,” confirmed Yankova.
During the forum, MEP Radan Kanev and Toma Pavlov from the European Commission's Reform and Investment Task Force emphasized the importance of consistent policies and strong institutional cooperation to ensure effective use of NRRP resources. Both were clear that the 100% grant model does not bring real change, as it only reaches a small fraction of the buildings in need and is socially unfair, since taxpayers with lower incomes often end up subsidising the renovation of wealthier citizens' homes.

Todor Andonov, member of the Management Board of the Bulgarian Construction Chamber, pointed to the short implementation timelines and lack of skilled workers as key challenges. He called for a long-term, stable programme instead of campaign-based initiatives, which would bring stability to the sector and improve renovation quality. He also advocated for a sustainable financing mechanism linked to the mandatory maintenance contributions required by law from condominium owners, citing Slovakia as a good example, where grant support is set at 40%.

Julian Popov, former Minister of Environment and Water, also stressed the need to rethink financing, focusing on individual homeowner participation and investments in knowledge. He noted that Bulgaria’s construction sector has vast innovation potential that should be fostered through consistent policy and suitable financial instruments. Supporting this view, representatives of professional associations and specialised financial institutions such as the Fund of Funds, EERSF, and NTEF presented concrete models and solutions. These will be further discussed in the new working group at the Ministry of Regional Development for the development of a National Building Renovation Plan and the rules for the new National Energy Efficiency Programme.

The goal is for the allocated resources—over BGN 2.2 billion, along with the funding generated through the future National Decarbonisation Fund—to reach the widest possible range of beneficiaries by attracting additional private investment and ensuring local technical assistance for the highest project quality.