Julian Popov: About 60 billion euros are needed for the energy renovation of the building stock in our country

Georgi Velev

The rough calculations that I have done so far show that the energy renovation of the Bulgarian building stock will cost about 60 billion euros. This was said by the Minister of Environment and Water, Julian Popov, who participated in the conference "Energy efficiency of the building stock: basis of the sustainable energy transition". The event is organized by the Center for Energy Efficiency "EnEfect" and the Ministry of Energy, with the support of the "Renovate Bulgaria" Coalition. 3eNews is the media partner of the event. The minister explained that the accounts were made years ago and then they showed that the necessary resource was 40 billion euros. With the current indexation and inflation, the value is more like 60 billion euros, the minister explained.

Thus, if our country continues with the approach of 100 percent public resource for the renovation of buildings, "the Bulgarian building fund will forever remain in the People's Republic of Bulgaria", Popov believes.

According to him, it is very important for politicians to focus precisely on the mobilization of those resources that will quickly renew the building stock. However, these resources are not state-owned. The minister is of the opinion that the funds should be used only for innovations or as "leverages" that can mobilize real resources. The actual funds for investment in the building renovation must be made through a private financial resource. This process to come from the banks and co-financing of the owners.

Innovations in the building stock should also be considered, Minister Popov added. According to him, these innovations cannot be seen in Bulgaria and the construction business in our country. Our country should also think in this direction and allocate resources for innovation in this direction.

"In order for us to be able to solve the issues with Bulgaria's building fund, we must provide very serious different financial instruments that will mobilize the huge financial resource that is not in the state, but in the people and companies. There, let us direct a significant public resource to stimulation of innovations and innovative approaches in the renovation of buildings," said the Minister of Environment and Water, quoted by BTA.

A serious problem is the lack of good coordination between the individual ministries at the administration level, Popov further explained. According to him, it is precisely the lack of synchronization that prevents the better work of state institutions. Much effort is currently focused on the National Decarbonisation Fund. In its current form – through the Fund for Energy Efficiency and RES, this coordination function is possible, but politicians do not take advantage of it.

A permanent policy regarding building renovation is needed

Until now, energy efficiency policy has been characterized by campaigning. This was said by the Deputy Chairman of the Parliamentary Committee on Energy, Radoslav Rybarski, who also took part in the conference. According to him, until now the question has been how much money is allocated for rehabilitation. Our country must achieve specific decarbonization goals and they must be realistically valued and proven.

According to Rybarski, it must be realized that people must be personally committed to improving their well-being and environment. He is of the opinion that the state can support citizens' self-participation, but greater participation and awareness of the effects of energy efficiency should be sought.

Radoslav Rybarski assesses the restructuring of the fund for energy efficiency and renewable energy sources and the creation of a National Fund for decarbonization as a good step. Now the question of how funds will be found for it and how they will be spent must also be answered. This process will be the first to be considered in the changes to the Law on Energy Efficiency. It is not clear when exactly the people's representatives will deal with this issue.

"I think we are on the right track. Indeed, coordination between the executive and legislative powers is of fundamental importance," commented Rybarski. He pointed out that clear goals should be set to be followed regardless of who is in the ministries. "These goals must become national and everyone must commit to them and they must not be changed," commented Rybarski.