Bulgaria Energy Sector
Foremost among the many challenges facing Bulgaria is the energy sector, which plays a large role in supporting Southeastern European projects within the EU’s “Green Transition” initiative. Bulgaria’s $7 billion Recovery and Resilience Plan (RRP) for its share of the EU Recovery and Resilience Facility (RRF) includes cutting power-sector emissions 40% by 2025; reforming and liberalizing the electricity market; developing a low-carbon economy; and increasing energy efficiency.
The government wisely wants to use this funding to help ease the inevitable transition away from coal, including construction of a state-controlled enterprise that would transform Bulgaria’s coal-extraction zones into spaces of recultivation and green utilization. Former mine workers would be re-trained and the land re-purposed. For example, a new battery manufacturing and recycling sector could serve as a potential source of new businesses and jobs in regions affected by the transition from coal. The plan also puts forward the development of geothermal energy capabilities that would help produce clean electricity and further decarbonization efforts.
Construction of energy-producing plants around geothermal energy is also part of the plan. The European Commission’s assessment finds that Bulgaria’s plan devotes 59% of its total allocation to measures that support climate objectives, which includes tripling power generation from renewables by 2026; cutting greenhouse gas emissions from the power sector by 40% by 2025; and setting out a framework for a coal phaseout.
Sustainable transport is also promoted, as are measures in the areas of water management and biodiversity conservation and restoration. The RRP envisions a roadmap for the development and encouragement of carbon-capture, utilization, and storage technologies and their mass adoption, which is key for the effective green transformation of the country.
The plan also enables support for installation of 600 MW in battery power with a total capacity of 6 GWh and 1.4 GW in power plants using renewable sources, including energy storage. There are also incentives in the package for communities of more than 10,000 households to install renewable energy devices. The energy sector decarbonization portion is worth $1.68 billion (EUR 1.7 billion).
Additionally, energy-efficiency measures are envisaged for residential buildings and public structures. Available funds total $914 million (EUR 924 million), with $658 million (EUR 666 million) earmarked for sustainable transportation. The European Bank for Reconstruction and Development is helping with the implementation of the Bulgaria’s Recovery and Resilience Plan, focused mainly on decarbonization, energy security, sustainable energy, public-sector reforms and private-sector competitiveness.
For more information about these opportunities, please contact Commercial Specialist Emily Taneva at emily.taneva@trade.gov