12 February 2025
roadmap
bulgaria
Overview of renewable energy in Bulgaria
At the end of 2023, the Bulgarian Energy from Renewable Sources Act was amended to facilitate the development of new renewable energy projects. Key changes in the law include the establishment of administrative assistance units at the municipalities to help investors with the permit application process, updated rules for grid connection, the designation of priority zones for the development of wind parks, and the introduction of a grid bond (either a deposit or a bank guarantee) during the grid connection procedure to prevent speculation with available grid capacity.
The Energy Act and the Electricity Trading Rules were also amended to establish a basic framework for the development of electricity storage projects and the participation of storage facilities in energy markets. Storage facilities are now recognised as specific assets under the law, allowing investors to develop projects for standalone or co-located battery energy storage systems.
Thanks to the improved regulatory framework, the M&A market for renewable energy projects is also booming. Foreign and local investors are evaluating projects at various permitting stages to identify suitable opportunities for development and financing. Transaction structures range from standard share purchase deals to more complex joint ventures.
The increased interest in the renewables sector has also been fuelled by the launch of the first auction procedures in Bulgaria to support renewable projects co-located with storage facilities and the development of national electricity storage infrastructure. These auctions will provide investment aid for the purchase of storage assets and reflect the focus of public policy in the energy sector – ensuring sufficient balancing capacities for the grid following the transition from fossil fuels to renewable energy sources.
authors: Dimitar Kairakov, Milena Gabrovska
Dimitar
Kairakov
Attorney at Law
bulgaria