Energy Efficiency and Renewable Sources Fund – financial and technical partner on the road to the Green Transition

Energy Efficiency and Renewable Sources Fund took an active part in the forum “The role of financial institutions for the green transition”, which was held in Velingrad on 29-30.11.2021, organized by the Center for Energy Efficiency EnEffect in partnership with the Bulgarian Construction Chamber, Тhe Sustainable Energy Development Agency, The Bulgarian Industrial Association, Тhe National Trust Ecofund, UACEG, Econoler Bulgaria, the Alliance for Energy Efficiency, EERSF, EcoEnergy, Sofia Municipality and Gabrovo Municipality.

“The message at European level is very clear – in addition to the expectations of a minimum European standard for building renovation, there is already conversation forzero energy buildings as a prerequisite for construction after 2030”, said Mr. Dragomir Tzanev, CEO of EnEffect.

“The necessary investments exceed many times the possibilities of both the budget and European funds – it is important to attract private capital, which can only be done on a market basis”, explained the executive director of SEDA – Mr. Ivaylo Aleksiev. According to him, it is important to make the transition from high-grant schemes to the market realization of such projects.

During the forum, Ms. Galia Vassileva presented the financial instruments of the Energy Efficiency and Renewable Sources Fund, in which the minimum participation of the borrower is 10 percent, the amount of funding – from BGN 30,000 up to BGN 3 million for up to 10 years. The project needs to implement standard technology, with at least 50 percent of the economic benefits should demonstrate energy savings.

She also focused on the new credit policy of EERSF, with reduced interest rates. The new conditions provide an opportunity for financing at a fixed interest rate of 3% up to 5.5%.

Ms. Vassileva shared that the Energy Efficiency and Renewable Sources Fund always strives to maintain up-to-date and flexible conditions that meet the expectations of its potential customers. EERSF aims to provide funds combined with a grant component under competitive conditions. This will enable the implementation of a larger number of projects, larger investments, and the grant to reach more beneficiaries.

One of the trends that has been marked out as a key one onthe Forum is the understanding that the financing of projects for the implementation of energy efficiency and renewable energy measures in Bulgaria must be carefully planned, they must  target specific savings and technical indicators set in advance, in order to ensure the efficiency of the investment. As Ms. Vassileva pointed out – these practices have been underlined in the principles of EERSF for more than 15 years. The Fund has a tradition of its responsible project financing, a lot of know-how and along with the provision of free technical expertise, it has built the reputation ofa preferred partner.