Can Bulgaria become a regional battery hub?

Romania is also not wasting its time - Bucharest is planning 5 GW of energy storage systems, with their phased introduction already underway. Already last year, a 24 MWh battery energy storage system by Sweden's Monsson was commissioned in the country. This was the first stage of a planned total of 216 MWh of capacity to be installed.

Big plans, modest execution

Bulgaria's potential is also big - almost 1,000 MW of new renewables came online last year alone, and according to official figures, installed PV in the country is already chasing 4,000 MW. Connection requests are also high despite market saturation. The reason is precisely energy storage systems, which will allow better management of production and provide a solution to surpluses and low prices. Batteries can be charged on sunny or windy days and used at peak times, like after 7PM when everyone is at home and appliances are running.

The construction of batteries is also a priority for Europe, so under the ReSTORE scheme of the Recovery and Resilience Plan (RRP) Bulgaria has almost BGN 1.2 billion available for the construction of new RES with energy storage systems to provide over 6,000 MWh for the system. However, the approval of applications has been significantly delayed, and uncertainties and scandals over payments under the RRP are already discouraging some applicants who are considering the cost-effectiveness of their projects. The delay of the second tranche (regardless of its size) is about to make some of the projects unfeasible - they have to be implemented by March 2026, which in case of further delay in signing the contracts sounds almost impossible.

Water as a battery

Bulgaria also plans to build three new pumped storage plants, each with a capacity of 1,000 megawatts. "These facilities will enable us to provide Bulgarian citizens with cheap energy from renewable sources, which fits perfectly with the concept of developing a competitive industry in the interest of consumers. Our ambition is to become the balancing power not only in our country, but also in the Balkans," the minister in charge Zhecho Stankov said at the conference.

The state is currently working on the restoration of the Chaira plant, but the repeated failure of one of the contracts to repair part of the facilities will certainly delay its full restoration. A pilot project for batteries at the Vacha 1 hydropower plant is also underway, and the National Electric Company (NEK) is planning similar projects for four more of its plants. These are Studen Kladenets, Aleko, Devin and Topolnitsa with an expected storage capacity of around 276 MWh. Feasibility studies are also being carried out for the construction of two new pumped storage plants at the Batak and Dospat dams, but no funding has been secured for them - each would cost around 900 million euro, which could put Bulgaria further away from realising them.

The risks

The challenges facing the solar industry are not limited to the volatility of renewable sources, says Emil Shopov, CEO of one of Bulgaria's leading solar energy producers - Suntera RE. He says the ability to accurately predict energy production depending on weather conditions is impossible, but with the help of batteries energy can be stored and used when it is needed.

Shopov pointed out that using batteries as part of hybrid projects will not only be important for mitigating generation volatility, but also for reducing price fluctuations and more effectively managing peak load on the grid. This ability to "move" power during the day and night is essential for grid stability and reducing reliance on coal-fired backup power.

During Energy Summit 2025, Shopov added that the need for short-term strategies to address these fluctuations is evident in Bulgaria, and stressed that this is a challenge for all other PV farm operators in the country. Often predicting energy production for even the next day is almost impossible, making storage integration particularly important. And to encourage investment in new technologies in Bulgaria, the government needs to speed up the process of creating a clear legal framework for these projects, says Photomate's Nikolay Ivanov. Otherwise, this would hinder the implementation of projects and the attraction of capital.

Encourage PPAs

Despite the global trend, the battery market in the country is still underdeveloped. The business is appetising, the interest high, but so are the risks it brings. Some of these are related to the under-popular Power Purchase Agreements (PPAs), which could significantly help the market. Most often they are long-term - 5 - 10 years, during which period they operate with a fixed price. The promotion of PPAs is among the priorities of the new Industrial Deal, which even states that by 2026 the Commission will draw up guidelines on how PPAs can be combined with so-called Contracts for Difference (CFDs). In a CFD, the parties agree on a price, but if the actual exchange value turns out to be lower, the buyer pays the difference. But if the exchange shoots up the prices and they turn out to be higher than agreed, everything "over the line" is the responsibility of the producer, who returns the difference to the buyer. Virtual power purchase agreements (VPPAs) are also rare on the market, and although they are increasingly popular at European level, they are still almost unknown in Bulgaria.

Bulgaria has a huge potential to develop energy storage systems and this could change the energy future of our country in the next ten years. The oversaturation of the market with new RES and overproduction has yet to become a problem that needs urgent solutions now. But to dominate regional markets, Bulgaria needs a predictable environment, clear regulations and financing. And in the current situation, none of the three is certain.