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Developers have submitted proposals for grants in Bulgaria for standalone energy storage units for 4.3 times more than the EUR 581 million budget. Funding isn’t secure, though, as the European Commission blocked a tranche from the European Union’s Recovery and Resilience Fund.
By the application deadline on December 5 for its RESTORE program, Bulgaria’s Ministry of Energy received proposals for 151 projects for standalone energy storage units. It said they amount to almost EUR 2.55 billion, compared to EUR 581 million available in state aid, or 4.3 times more.
Bulgaria is the only European Union member state that launched a call for grants for such batteries under the National Recovery and Resilience Plan (NRRP), Kapital wrote. The scheme is part of the Recovery and Resilience Facility (RRF), which the European Commission controls.
Bulgaria is heading toward its eighth general election in less than four years
The project could fundamentally change the energy system in the entire region, the news website claims, but funding is insecure. Namely, the second tranche from NRRP is blocked amid the chronic political (and energy) crisis. Bulgaria will likely hold its eighth general election since April 2021 early next year.
The article suggests the funds could be paid from the state budget.
Available grants could provide for as much as 8 GWh in battery capacity
The government is targeting at least 3 GWh of usable (guaranteed) storage capacity for the grid from the call.
But the estimate was from two years ago and now the same budget could provide for more than 6 GWh, the media outlet calculated. It would cover a third of Bulgaria’s electricity consumption in the daily peak from 19:00 to 21:00.
Namely, the grants can cover up to 50% of eligible costs, but a lower proposed share brings more points. It means dozens of projects could become beneficiaries, as batteries are now economically viable even without state aid, according to the report. It adds that with a 30% support, the capacity could reach 8 GWh and total investments would amount to over EUR 2 billion.
No contracts yet from previous call either
Another challenge is that all the battery energy storage systems (BESS) must be up and running in March 2026 at the latest. It raises the question of the availability of equipment and skilled workforce.
Authorities will check the status of every project in just half a year, the tender documentation shows.
More than a month ago, the ministry picked 249 projects from a tender for energy storage units within renewable electricity plants. They are eligible for EUR 268 million in total state aid, also from NRRP. However, not one signed the contract yet.
First major BESS units, battery factories pave way for strengthening Bulgaria’s energy storage segment
Bulgaria is relying heavily on battery technology and energy storage overall for 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 Energy and Water Regulatory Commission (KEVR) has imposed a deposit or bank guarantee of EUR 25,500 per MWh for battery developers. It said the goal is to curb speculative investments.
Renalfa IPP commissioned its first utility-scale BESS in June. The facility of 25 MW in operating power and 55 MWh in capacity in the town of Razlog in southwest Bulgaria is colocated with a 33 MW photovoltaic plant.
Solaris Holding has inaugurated a 32 MW solar power plant with an energy storage unit of 61 MWh in September. The facility is on a former industrial waste site in Pernik.
A photovoltaic system of 5.6 MW with a battery capacity of 15 MWh will meet the entire electricity needs of a mattress factory in Plovdiv.
A strong battery segment requires a good manufacturing base. Belgian company ABEE launched a EUR 1.1 billion project a year ago 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. |
