Bulgaria is set to experience a significant upsurge in green energy investments in 2024-2025, following key legislative amendments adopted in 2023. These changes are a response to the recent decline in renewable energy sources’ share in the country’s end consumption and are aimed at accelerating progress towards Bulgaria’s 2030 renewable energy goals.
In 2022, the share of renewable energy sources in Bulgaria’s end consumption of electricity was 19.10%, a figure that falls short of the 2030 target of 27%. To address this, the Bulgarian government has simplified administrative procedures and leveraged the country’s favorable climatic conditions to attract more green energy investment initiatives. While the sector was predominantly led by Bulgarian companies, accounting for 70% of the market, there is a growing interest from international investors from Israel, China, the USA, Denmark, and India in developing large-scale energy projects in Bulgaria.
Industry experts predict that by 2030, Bulgaria will double its current renewable energy production capacity of 2.4 GW, potentially exceeding the EU’s goals for the country. The recent legal reforms are expected to shorten project development times, enhance production efficiency, and offer increased financial flexibility for electricity producers. Significant amendments in the Energy Act have addressed gaps in energy storage legislation and have established a legal basis for the realization of projects under the EU Plan for Reconstruction and Resilience for Bulgaria.
A new commercial platform for the exchange of energy origin guarantees is under development, with an anticipated launch in early 2024. The legal framework now facilitates a more streamlined process for the designation of agricultural lands for electricity production and reduces the timeframe for concluding grid connection agreements with the operator to six months.
The focus is also on supporting industries in reducing their carbon footprint. Notably, Aurubis Bulgaria is constructing solar power plants to meet 20% of its energy needs, and other major industries have announced plans to become carbon neutral. The Bulgarian government is aiding this transition by providing financial support to small and medium enterprises for their growing electricity needs. Part of the EUR 1.2 billion allocated by the EU to support Bulgaria’s transition from coal to green energy will be used in 2024 to fund private green energy projects.
A potential game-changer for Bulgaria’s energy sector is the Draft Law on renewable energy sources in Black Sea territories. If adopted, this legislation will allow for the installation of offshore wind power plants, with concessions granted for 30 years and extendable by five years. The plan, expected to be adopted in the first half of 2024, aims to develop more than 3 GW of offshore wind plants.
Households will also play a role in this energy transformation. Legislative amendments have stipulated that from January 1, 2026, household customers will be supplied only by electricity traders at freely negotiated prices. Encouragement for micro-investments in renewable energy is evident through the transposition of Directive (EU) 2019/944 provisions related to citizen energy communities and active customers.
In 2023, Bulgaria commissioned a significant photovoltaic power plant with a capacity of 123 MW, marking a major step forward in the country’s renewable energy sector. Furthermore, a 250 MW hybrid project combining wind and solar energy is underway in southeastern Bulgaria.
With these developments, Bulgaria is not only aiming to meet its renewable energy targets but also setting the stage for a sustainable and resilient energy future, making the country an attractive destination for green energy investment and innovation.
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