Axpo, Advance Green Energy ink agreement on BESS in Bulgaria

Axpo and Bulgaria-based Advance Green Energy have signed a financial agreement for Bulgaria’s battery energy storage system located in Lovech, northeast of Sofia.

The BESS facility of 124.1 MW in operating power was inaugurated in May last year. It is located next to a solar power plant.

Axpo and Advance Green Energy have entered into a long-term financial agreement designed to hedge the market revenues of Bulgaria’s first and largest operational battery energy storage system (BESS) located in the Balkan Industrial Park in Lovech, the Switzerland-based firm said.

After Poland, Axpo is continuing to expand its expertise in supporting large-scale energy storage projects, underlining its role in the energy transition by ensuring financial stability for storage infrastructure, the company added.

Axpo: The agreement underscores the importance of tailored financial solutions

Lovech BESS is fully operational and plays a vital role in supporting grid stability and enabling the integration of renewable energy into the region’s power system.

According to Axpo, the financial agreement underscores the importance of tailored financial solutions for renewable energy storage projects.

By hedging energy arbitrage revenues, the deal provides stable guaranteed revenue streams for the operation of the BESS, ensuring its long-term profitability and contribution to Bulgaria’s renewable energy goals, the Swiss company explained.

According to Axpo Greece Managing Director Vasilis Machias, through this collaboration the firm is reaffirming its commitment to delivering innovative solutions that enable the growth of renewable energy and energy storage in emerging markets.

Machias: Axpo is reaffirming its commitment to delivering innovative solutions

“This agreement reflects the shared vision between Axpo and Advance Green Energy to advance the energy transition in Bulgaria and the wider region,” Machias stated.

The Chairman of the Board of Directors of Advance Green Energy Georgi Domuschiev added that partnering with Axpo on this long-term agreement validates the company’s vision as a renewable energy leader in Bulgaria.

The deal provides the financial certainty the firm needs to continue investing in grid stability and renewable integration, while serving as a blueprint for similar projects in the region, he stressed.

Of note, for the investment in the energy storage facility, worth EUR 75 million, Advance Green Energy has won a EUR 29.6 million government subsidy at the RESTORE tender.

Axpo is one of the leading global renewable energy producers and traders operating in more than 30 countries across Europe, North America and Asia. It is also pioneering the deployment of power purchase agreements (PPAs) in Southeast Europe.