Bulgaria grants EUR 587 million to 82 battery storage projects

Developers of 82 standalone battery storage projects in Bulgaria, for an overall 9.71 GWh in capacity, got approval for EUR 587 million in subsidies from the Ministry of Energy. Another 30 landed below the line, but the government intends to boost the program by EUR 120 million.

More than four months after the deadline for applications, the Ministry of Energy of Bulgaria ranked 112 projects for standalone battery energy storage systems (BESS). Through the RESTORE call for grants, it approved EUR 587 million for 82 of them, exhausting the budget.

The scheme is part of the National Recovery and Resilience Plan (NRRP), under the Recovery and Resilience Facility (RRF), which the European Commission controls.

The selected investments envisage an overall 9.71 GWh of storage capacity, compared to the target of at least 3 GWh. The aim is to provide balancing to enable a significant increase in the share of wind and solar power in the energy mix, as well as to ensure the security and stability of the country’s electricity system. The facilities will be connected to the grid at both the transmission and distribution levels.

Notably, Bulgaria is struggling to meet the conditions and deadlines for NRRP funding, including for battery projects. Moreover, the ministry apparently decided not to move forward with a second call for subsidies for households for solar panels with or without batteries, and for solar collectors. It risks losing the European Union’s funding.

Project underway for 125 MW battery system in Burgas

The largest selected investment is BESS Burgas. The project is worth EUR 90 million, of which the grant would cover 26.5%. The proposed facility would have 125 MW in operating power and a four-hour duration, translating to 500 MWh.

The list lacks data on planned capacities for many of the projects. Among them is the one from ContourGlobal Maritsa East 3 (Maritsa iztok 3), the operator of a coal power plant that recently ceased operations. The company intends to invest EUR 74.5 million, the fifth-highest amount. The ministry said it would provide 40% of the total.

The owner of the recently closed Maritsa East 3 coal power plant won a 40% subsidy for its EUR 74.5 million BESS proposal

Weapons and ammunition producer Arsenal 2000 won a 44% subsidy for its EUR 48.9 million project. It intends to install a BESS of 80 MW and 350 MWh. One of the selected proposals is called Verila Solar Park 2. The share of the approved grant in the EUR 65.7 million investment is 32%.

Toki Storage stands out among the beneficiaries with 11 approved projects of the same size and valuation: 10 MW, 40 MWh and EUR 6 million each. The grants would cover 30% to 39.3%.

NEK fails to qualify with its project for battery system at Topolnitsa hydropower plant

Out of 151 applications, 118 initially passed to the ranking stage. The ministry said they were worth a combined EUR 838 million. The 30 projects in reserve are worth EUR 212 million, it added.

They include proposals from coal plant operators Toplofikatsiya Pernik and Bobov Dol. The ministry rejected four projects, of which one from state-owned National Electricity Co. (NEK), for a 20 MWh battery unit at its Topolnitsa hydropower plant.

According to consulting firm New I, involved in more than 40% of the winners in the call, they are worth EUR 1.59 billion altogether, Bulgarian language EU Funds website reported. Requested support ranges between just below EUR 40,000 per MWh and EUR 80,000 per MWh, and the weighted average came in at EUR 60,000 per MWh, it revealed.

Many of the 151 projects were duplicated, the article adds.

Importantly, the government has proposed increasing the RESTORE program by EUR 120.6 million, which would be sufficient for at least 20 projects in the reserve group.

The ministry was supposed to select the beneficiaries by January. The deadline for drawing the EU funds is March next year, so the developers must rush to install their battery systems – but first they need to sign contracts with the government.