Bulgaria awards EU funds to 249 projects for renewables with energy storage

Under two calls in Bulgaria, developers of 249 projects will receive EUR 268 million in total state aid. The programs are for renewable electricity plants with energy storage units.

The Bulgarian Ministry of Energy said it completed two funding rounds under the National Recovery and Resilience Plan. They are for grants for projects for renewable electricity plants that include energy storage. The programs are worth a combined EUR 273 million, of which the beneficiaries receive EUR 268 million.

In particular, the support was approved for the energy storage component, per megawatt of operating power. Altogether, the funds cover 3.1 GW in production with 1.18 GW in storage.

No beneficiary can receive more than a third of the sum and more than 50% of eligible costs. Notably, the deadlines are exceptionally tight: the projects must be completed by the end of March 2026.

The National Recovery and Resilience Plan or NRRP is funded through the European Union’s Recovery and Resilience Facility.

Targets greatly exceeded

One call was for solar and wind power projects of 200 kW to 2 MW each. The goal is to add 200 MW overall, with at least 100 MW of battery energy storage. The ministry approved the entire EUR 55 million available.

Developers submitted 327 proposals. The ministry said that of the 267 valid and ranked, 200 would get funding.

They amount to 435 MW of production capacity with 176 MW of energy storage. The remaining 67, eligible for EUR 22 million in total, were set aside as reserve.

High response resulted in 83 projects ending up below the line, with a reserve status

The other tender, for renewable electricity projects of at least 200 kW, was intended for large enterprises.  The government earlier said at least 940 MW of capacity needs to be supported, with a minimum of 200 MW in total in battery operating power.

The scope was greatly exceeded, coming in at 2.66 GW and 1 GW, respectively. The ministry received 70 proposals, of which 65 met the conditions for a total of EUR 214 million in state aid.

As the budget covered 49 highest-ranked projects, the other 16 remained below the line. They were eligible for a combined EUR 22 million in grants.

Funding aimed at overcoming grid congestion, balancing challenges

The ministry said its two programs are aimed at rapidly deploying intermittent renewables capacity, overcoming grid congestion and power system balancing challenges and avoiding market distortion.

Investing in decarbonized electricity production technologies is the way to develop a modern energy industry, Acting Minister of Energy Vladimir Malinov said. He pointed to the country’s main priorities in the sector – reducing carbon emissions and integrating renewable energy capacities with the grid while ensuring the security and stability of the power system.

Another tender underway for standalone energy storage projects

Bulgaria is relying heavily on battery technology and energy storage overall in its energy transition. With the surge in photovoltaic capacity, ambitious plans for renewables as a whole and a collapse in the coal power segment, the country needs urgent grid upgrades as well.

The ministry is also conducting a tender for EUR 589 million in grants for standalone projects. However, the Energy and Water Regulatory Commission (KEVR) recently imposed a deposit or bank guarantee of EUR 25,500 per MWh for developers. It said the goal is to curb speculative investments.

Renalfa IPP commissioned its first utility-scale battery energy storage system in June. The 25 MW – 55 MWh facility in the town of Razlog in southwest Bulgaria is colocated with a 33 MW photovoltaic plant.

It is one of the first BESS units in Eastern and Southeastern Europe and the largest one in the country.

Belgian company ABEE launched a EUR 1.1 billion project in December for a battery plant, recycling facility and a research and development center in Bulgaria. Solar MD, a battery manufacturer based in South Africa, opened its LiFePO4 Energy Storage manufacturing facility in Rousse last year.