- Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?
Bulgaria has a well-developed renewable energy sources (“RES”) sector, with over 3,000 MW of total installed capacity (mostly PV), putting it on track to achieve its 3,200 MW target for 2030 about 5 years ahead of schedule, thus almost tripling its installed solar capacity in about three years, from just over 1 GW in 2020. In 2023, the TSO confirmed applications for RES projects totaling 40,000 MW while in 2024 the number was reduced to 35,000 MW.
In 2022, approximately 19% of electricity in Bulgaria came from renewable sources, down from 19.5% in 2021 and 23.3% in 2020, according to Eurostat. Wind and hydropower accounted for over two-thirds of the total electricity generated from RES (37.5% and 30%, respectively). The remaining one-third of electricity came from solar (18.2%), solid biofuels (6.9%) and other renewable sources (7.5%)
- What are the key developments in renewable energy in your country over the last 12 months?
In May 2025, the Parliament finally adopted the faster deadlines and procedures for RES. The expected reduction in the administrative burden will be achieved by shortening the deadlines and optimizing the implementation of the administrative procedure for issuing permits for the implementation of investment intentions for the production of energy from renewable sources.
The adoption aims to fully transpose European requirements for the promotion of green energy. It proposes specific measures for the accelerated construction of renewable capacities, energy storage and the simplification of administrative procedures for investors. The proposed changes introduce the requirements of Directive (EU) 2023/2413, which sets a new target: a minimum 42.5% share of renewable energy in the EU’s gross final consumption by 2030. A national target of 34.48% is foreseen for Bulgaria, set out in the updated National Energy and Climate Plan (2021–2030).
Faster procedures
The amendments introduce specific deadlines for issuing permits for the construction of solar energy facilities and energy storage systems, which is an important step towards accelerating investments in renewable sources and making it easier for households and businesses.
When solar panels and associated facilities are installed on buildings or other artificial structures (excluding water areas), the building permit must be issued within three months .
If it is a question of small solar systems with a capacity of up to 20 kW , intended for personal consumption or for energy communities, the period is shortened to one month.
Additionally, the principle of “tacit consent” is introduced : if, after confirmation of the completeness of the submitted documents, a building permit is not issued within the specified period, it will be considered automatically issued, provided that the power of the installation does not exceed the available power of the building’s electrical connection.
In a nutshell, the changes can be summarized in the following manner:
- Up to 3 months for issuing a construction permit for solar installations and energy storage facilities.
- Up to 1 month for installations up to 20 kW, including for citizens and energy communities.
- If no response is given within the deadline, the permission is considered tacitly granted, subject to certain conditions.
Simplified procedures for heat pumps :
- Up to 1 month for connecting heat pumps up to 50 MW.
- Up to 3 months for geothermal heat pumps with such power.
An end customer may install in a building connected to the electricity distribution or closed electricity distribution network and on real estate adjacent to it in an urbanized area, a heat pump with:
- electrical power up to 12 kW;
- electrical power up to 50 kW, installed by a consumer of own energy from renewable sources, for which the electrical power of the installation for the production of electricity from renewable sources of the consumers of own electricity from renewable sources amounts to at least 60 percent of the electrical power of the heat pump.
2. Establishments of Municipal Service Centres
The changes require that an Administrative Service Centre operate in each municipality, which will assist citizens and companies with information and guidance on the procedures for the construction, reconstruction or modernization of renewable energy facilities, including heat pumps and energy storage facilities, and organize the administrative procedures themselves – for example, for building permits and for connection to the electricity or heat transmission network. In fact, the creation of such Centres also exists in the current version of the Law, but it became clear from the discussions that they are not yet separate. The Centre will accept requests for permits and will:
- ensures that the documents are in order;
- notifies within 3 days of irregularities and gives 14 days for corrections;
- terminates the procedure if the irregularities are not eliminated.
The Center is preparing a schedule for the construction and commissioning of the facility:
- the schedule includes deadlines for all participants – the applicant, the administration and the network operators;
- meeting deadlines is mandatory for everyone.
3. Specific deadlines are being introduced for the completion of permit procedures:
- up to 1 year – for small installations under 150 kW, for modernization, or for storage facilities;
- up to 2 years – for all other cases;
- up to 3 years – only for offshore wind farms;
- the period may be longer if the applicant requests it.
The Center is obliged to notify network operators of each issued construction permit and to provide them with the necessary documents (such as property rights and design visas).
4. Offshore wind farms
The most discussed and controversial change in the REA Act was the schedule for the deadlines for completing the permit issuance procedure, including for issuing the permit for use or the certificate for commissioning, which also included those for offshore wind farms, for which, however, there is still no legislation in Bulgaria for their construction.
5. RES in urban development plan
The amendments to the Renewable Energy Act introduce a new obligation for institutions responsible for urban planning: when designing infrastructure in urban areas (such as new neighbourhoods, business areas or public buildings), the possibility of using heating and cooling energy from renewable sources will have to be considered, where appropriate. This includes technologies such as geothermal systems, solar thermal panels or heat pumps.
The goal is to integrate sustainable solutions at the planning stage that will reduce dependence on fossil fuels and improve the energy efficiency of buildings and neighbourhoods.
In addition, consultations with electricity and heat transmission network operators will be mandatory. They will need to take into account how new projects and opportunities for local energy production (e.g. through solar rooftops) affect the load on the network. Coordination will also be sought with the needs of energy communities and households that produce part of their own electricity.
The measure is part of broader efforts to accelerate energy transition and promote local, sustainable energy sources.
6. Green energy in transport
The new legislative changes introduce a specific target: by 2030, at least 14% of the energy used in transport must come from renewable sources – for example, biofuels, biogas or electricity from the sun and wind.
This target is mandatory and will be implemented through commitments from fuel suppliers, who will have to provide sufficient amounts of green energy to the sector. This includes not only fuels for cars, but also energy for rail, maritime and air transport.
The measure is part of the European decarbonization policy and aims to reduce dependence on fossil fuels while promoting the use of cleaner, sustainable energy sources in transport.
Though the Parliament finally adopted the above changes, the president has returned the legislative proposal for new discussions as he considers that certain changes are not fully compliant with the Bulgarian Constitution. In light of this, it is expected that the changes will be finally adopted in June 2025, without material changes.
3. What are your country's net zero/carbon reduction targets? Are they law or an aspiration?
Like other EU member states, Bulgaria has elaborated its Integrated National Energy and Climate Plan (“INECP”) in 2019 to outline its climate-mitigation targets and policies through 2030. The main strategies on the energy supply side include reducing the use of coal as an energy source; expanding nuclear capacities; increasing investment in and use of RES, such as solar, geothermal and biofuels; and increasing the use of natural gas.
The INECP presents GHG emissions projections through 2030 under two different assumptions. One projection is based on (only) existing policies and measures, including at the EU level. The other projection reflects additional planned policies and measures. EU member states, including Bulgaria, are required to update and report these projections periodically. However, neither projection in the latest submission reflects more recent developments, including measures in Bulgaria’s Recovery and Resilience Plan (“NRRP”), updated plans on nuclear facilities, and most recent developments of EU-level policies, including Fit for 55 and REPowerEU.
4. Is there a legal definition of 'renewable energy' in your jurisdiction?
Energy from renewable sources is legislatively defined as “energy from renewable non-fossil sources, namely wind, solar (solar thermal and solar photovoltaic) and geothermal energy, environmental energy, tidal, wave and other ocean energy, hydroelectric power, biomass, landfill gas, waste water treatment plant gas and biogases.”
5. Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?
The EWRC as the main regulatory agency that monitors all activities in the energy sector and is the competent body to resolve any disputes between participants on the RES market. The EWRC is an independent, specialised state body that carries out its activities on the basis of independence, impartiality, professionalism, integrity, consistency, publicity and transparency. The EWRC reports on its activities to the Parliament. It is a permanent body that considers and resolves issues related to the regulation of business plans and prices in the energy sector and complaints from market participants related to their access to the grid, supply of electricity and other issues.
The Bulgarian photovoltaic association (“BPVA”) is a non-profit organization unifying more than 400 companies from the renewable energy sector in Bulgaria. Its members are companies with different profile – producers of solar panels, designers, installers, investors in the construction of photovoltaic power plants, project developers, financial institutions, investment companies and consultancies. It is suitable for companies with photovoltaic projects or those who have serious and well-founded investment intentions in the development and construction of photovoltaic power plants in the country. BPVA’s mission is sustainable, low-carbon, modern and corresponding to the European standards energy sector. The Association maintains effective communication with National institutions, the non-governmental sector and international organizations.
The Bulgarian Wind Energy Association (BGWEA) is a representative organization for the wind energy sector in the country. BGWEA brings together the majority of wind energy producers over 1 MW and companies actively engaged in the sector. BGWEA’s members represent a major share of the total installed wind power capacity in Bulgaria.
6. What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?
The interest in investments in renewable energy is surging in Bulgaria as the business sector rushes to take advantage of high energy prices, however the price trend is turning around in the last few months. The market for commercial solar PV systems for self-consumption (prosumers) has started to grow rapidly in Bulgaria. This rapid development is occurring despite the lack of developed regulatory framework for prosumers.
There are few main factors behind this increased interest: 1. The low upfront cost of investing in solar PV, which makes it easier for companies to finance small and medium-sized projects outright rather than relying on bank lending; 2. Self-produced electricity is cheaper than buying electricity on the open market, which enables companies investing in self-generation to reduce their energy costs. 3. Another factor is that becoming a prosumer allows commercial consumers to increase their independence (in part, if not in full) from the state-governed electricity sector and its unpredictability.
One good example might be the introduction of corporate long-term PPAs in various Bulgarian companies within the last 18 months. In our opinion, such approach enormously helps the companies to tackle price volatility on the Bulgarian energy market.
7. Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)?
There have not been considerable changes within the last year except for the price trend going down due to accelerated deployment of RES in the last few months. However, as the EU ESG requirement will gradually become mandatory within the next 2-3 years for a large number of Bulgarian companies, it can be reasonably expected that most of the economic operators will get more engaged in RES production (as prosumers) or seek green energy as consumers.
8. How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?
The good business practices in the private sector are the predominant accelerators in reducing carbon emissions. As EU ESG requirements will affect most of the Bulgarian business from 2025 onwards, it is expected that the regulatory framework will be adjusted in order to stimulate carbon emissions savings.
9. How are rights to explore/set up or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?
As of 2025, renewable energy plants with total installed capacity up to 20 MW are no longer subject to licencing procedure, reducing administrative burdens on investors. Simplified regimes were introduced for small-scale (rooftop and façade) renewables and storage with total installed capacity of up to 5 MW.
For the time being, Bulgaria has not yet adopted offshore RES legislation however there is pending legislative procedure that envisaged granting exploration permits for deployment of offshore wind farms.
There is practically no substantial difference in the licensing procedure for conventional (thermal, gas) and renewable energy (solar, wind, hydropower and biomass), however, from environmental point of view, the renewable projects (especially solar) enjoy simplified environmental permitting procedure.
10. Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?
The government has been indirectly involved in the RES industry only in the hydropower sector where the 100% state-owned National Electric Company owns 31 hydro power plants (HPPs and PSHPPs) with total installed capacities of over 2700 MW. NEC is also considering entering into the solar and wind sectors but the plans remain under doubt due to lack of financing.
In addition, as RES cooperatives are expected to flourish within the next few years, certain municipalities have aired expressed interest in setting-up such form of partnership between the local authorities, the business and the local communities.
11. What are the government’s plans and strategies in terms of the renewables industry? Please also provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals?
As per the INECP Key targets for 2030 include: no net increase in greenhouse gas (GHG) emissions in non-emission trading system (non-ETS) sectors compared to 2005, in line with the EU Effort Share Regulation on binding annual GHG emission reductions; a national target of 27% for the share of renewable energy within gross final energy; and specific targets for energy efficiency.
The Bulgarian Energy Act (“EA”) and the Renewable Energy Act (“REA”) are the main pieces of legislation that regulate the development, financing and operation of power plants and the sale of electricity as well as the issue of certificates of origin. The construction and the development of power plants (including RES ones) are further regulated by the Ownership Act, the Spatial Development Act, and the Environmental Protection Act, etc. The operation, licensing and commissioning or sale of electricity is further regulated by various ordinances and rules that cover the licensing of activities, access and connection to the grid, trading, participation on IBEX, among others. The regulatory framework on certificates of origin and guarantees of origin (GOs) is provided in the REA.
For the purposes of introducing a favourable framework to promote and facilitate the development of the production and consumption of RES, steps are being taken to optimise the legislative framework, to provide better regulation of the rights of those producers and consumers. The envisioned support for such projects will be provided by ensuring that the projects have the ability to operate in the energy grid system, as well as facilitating their integration on the market, including the establishment of favourable conditions to make them attractive.
In May 2022, an amendment has been adopted which aims to optimise the deadlines for the construction of RES up to 5MW for covering own consumption and ensure their faster implementation to optimise electricity costs. The changes envisage a potential notification regime to be applicable to RES projects that produce electricity intended for own consumption.
In order to integrate the national electricity market into the common European energy market, market coupling within the market for the day ahead on the border with Romania, as well as on the border with Greece, took place in 2021. The next integration project is market coupling within the day on the Bulgarian–Greek border, has been launched at the end of 2022 in parallel with market coupling with the Slovakian market within the day. The market couplings affect the operation rules for trading on the energy market, including for RES.
The anticipated future legislative changes include the adoption of offshore RES legislation, trading rules for certificates of origin, enhancing the legal regime regarding the deployment of storage facilities (batteries), development of green hydrogen etc. However, due to the political instability in Bulgaria during the last several years, most of the anticipated legislation has been substantially delayed.
12. Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?
RES policies and incentives in Bulgaria are generally established at the national level under the REA and the INECP, drafted in accordance with the main strategic documents at European and national level. Additionally, the approved NRRP outlines the following investment: stimulating the production of electricity from RES (by reducing the administrative burden on renewable investments with regard to the installation, connection and operation of the facilities); scheme to support pilot projects for the production of green hydrogen and biogas; and scheme to support the construction of a minimum of 1.4GW RES and electricity storage capacity (lithium-ion batteries). The exact criteria for applying are soon to be approved by the competent state authorities.
There is a system of incentives and measures (administrative, financial and regulatory) that is used to stimulate RES in Bulgaria. The financial incentive includes payment of the feed-in tariff, compensation in the form of premium and various operational programmes for financing measures for the use of RES. As of 2018, the feed-in tariff is provided only for new RES produced by power plants with a total installed capacity of up to and including 30kW, which is planned to be built on roof and facade structures of buildings connected to the electricity distribution network and on real estate to them in urban areas, and under already concluded contracts for the purchase of RES. With the changes in the EA in 2021, all producers of RES plants with a total installed capacity of 500kW and over 500kW sell the electricity produced by them on the electricity exchange market, receiving a premium for the quantities of electricity sold up to the net specific production established by the EWRC.
The Fund for Security of the Energy System (“FSES”) is the authority to pay the premium to producers from high-efficiency combined generation with a capacity of 500kW and above 500kW under the EA and to RES producers with a total installed capacity of 500kW and over 500kw under the REA. The premium is determined by a decision of the EWRC, including for past regulatory periods. However, this refers only to producers who have previously signed a long-term bilateral purchase contract under the preferential price. The premium is granted until the expiration of the term of the contracts. Once the net specific production is reached, no premium is paid to the producers by the FSES; they shall receive as income only the purchase price from the RES energy sold on the electricity exchange market.
13. How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices?
In Bulgaria, natural gas is not used for production of electricity as there are no TPPs that use natural gas as primary energy source. In addition, as only less than 10% of the households use natural gas for heating.
14. What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes/challenges?
The most important barriers can be summarized in the following manner:
1. Removal of unjustified regulatory & administrative barriers;
2. DSO duties around cooperation with energy communities and facilitation of energy sharing;
3. Transparent and less burdensome registration & licensing procedures;
4. Incentives connected to network tariffs based on a Cost Benefit Analysis, implementing an objective and non-discriminative methodology;
5. Regulatory capacity building for public authorities.
15. What are the key contracts you typically expect to see in a new-build renewable energy project?
In Bulgaria, power purchase agreements (PPAs) have become increasingly popular as the country seeks to diversify its energy mix and reduce its dependence on fossil fuels. The Bulgarian government has implemented several initiatives to encourage the adoption of renewable energy and the use of PPAs. These include the introduction of feed-in tariffs, which provide a guaranteed price for renewable energy generation, and the establishment of the FSES, which provides financial support for renewable energy projects. PPAs are helping to accelerate the adoption of renewable energy and reduce the country’s reliance on conventional fossil fuels. As such, they present a significant opportunity for investors, developers, and other stakeholders looking to participate in Bulgaria’s renewable energy sector. There is one good example for adopting a businesswise engaging in renewable energy business. A client of ours is currently operating the largest biomass RES facility and using the whole produced energy quantities for its own use (prosumer), while it has concluded a very specific agreement for delivery of electricity from RES facilities, excluding the conventional coal energy supplies. This is probably the brightest example in Bulgaria for complying with Paris Agreement, ESG, carbon neutral policies, providing sustainable development in the plants, etc.
16. Are there any restrictions on the export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) of the implementation of the Net Zero Industry Act (EU) Regulation 2024/1735?
There are no such restrictions in place.
17. Has deployment of renewables been impacted in the last year by any non-country specific factors: For example, financing costs, supply chain or taxes or subsidies (e.g. the US's Inflation Reduction Act)?
There has not been such material impact as the RES market continues to grow despite the price trend going down.
18. Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?
1. Tenevo Solar Technologies PV plant with a capacity of 240 MW;
2. Dalgo Pole PV plant with a capacity of 210 MW;
3. Galabovo Solar PV plant, with a capacity of 200 MW;
4. An upcoming 400 MW solar park in Apriltsi;
5. VerilaPV plant, with a capacity of 120 MW.
19. How confident are you that your jurisdiction can become a leader in newer areas like offshore wind or hydrogen?
During the last several years, Bulgaria has aimed to promote green hydrogen through regulatory and administrative measures. These include transitioning from grey to green hydrogen, initiating pilot projects, decarbonizing power generation, modifying electricity trading regulations, and developing hydrogen transport infrastructure. Bulgaria’s National Hydrogen Roadmap, directed by the Ministry of Innovation and Growth, aims to stimulate hydrogen technologies across industry, energy, and transportation sectors.
Aligned with a broader European decarbonisation objective, it outlines a green hydrogen production plan and emphasizes regulatory, financial, stakeholder, and public engagement components. The Bulgarian National Hydrogen Roadmap seeks to stimulate hydrogen tech growth, hit climate targets, cut emissions, champion renewables, and advance towards a circular economy. It ensures a balanced transition to climate neutrality, with an eye on Bulgaria’s unique economic attributes. Recently, the first of its kind hydrogen charging station for vehicles has been put into operation. Hydrogen can enter the charging station through two inlets. One is connected to an 8.5 kg/day capacity electrolyser that produces hydrogen on-site with renewable energy from the PV farm at the field laboratory. The hydrogen thus produced is of very high purity, sufficient for direct use in vehicles. Through the second input, hydrogen can be supplied from cylinder groups supplied from other sources, allowing the station to achieve a higher refuelling capacity if required.
20. How are renewables projects commonly financed in your jurisdiction?
In Bulgaria, there are three main types of financing – equity capital, investment lending and grant financing. While equity financing and mezzanine financing have somehow limited applicability, investment lending has enjoyed much more success. In recent years, investment loans for the construction of solar power plants and other renewable energy projects have gained tremendous importance for the industry in Bulgaria. Debt financing consists of obtaining a loan or issuing bonds to raise capital and requires the company to return the borrowed funds and interest.
In addition, in March 2024, the Bulgarian government initiated two procedures for project applications concerning the development RES with battery storage capabilities. The first one is for projects between 200 kW and 2 MW with total funding of EUR 18 million per project, which aims to finance RES projects with total installed capacity of 200 MW with a minimum of 100 MW ‘behind-the-meter’ battery storage. The maximum state funding is 50% of the storage and not more than EUR 550,000 per 1 MW installed storage capacity.
The second procedure is open for all projects above 200 kW, which is aimed towards the storage. The overall support under the grant mechanism is estimated at a total of EUR 215 million, financing 940 MW worth of new RES plants with at a minimum of 200 MW of installed storage capacity. The ceiling for a project here is around EUR 30 million. The maximum state funding is 50% of the storage costs but not more than EUR 375,000 per 1 MW installed storage capacity.
21. What is your forecast for the coming year(s) for renewable energy in your jurisdiction?
Bulgaria’s renewable energy sector is poised for significant growth in the coming years, driven by legislative reforms, increased investments, and strategic initiatives aimed at reducing carbon emissions and enhancing energy security.
Recent legislative reforms have simplified administrative procedures, reduced taxes, and shortened project development timelines, creating a more favourable environment for renewable energy investments. The Bulgarian government shall also introduced financial incentives, including grants and support schemes, to encourage the development of renewable energy projects, particularly in regions affected by the transition away from coal.
According to Bulgaria’s Integrated Energy and Climate Plan, the share of renewable energy in gross final energy consumption is expected to reach 40% by 2030. This ambitious target is supported by plans to phase out 1,600 MW of thermal power capacity by 2026 and to develop 14,000 MW of new nuclear and renewable energy capacities by 2040. However, as the Integrated Energy and Climate Plan is currently under review and pending substantial changes in light of the upcoming update on the Bulgaria’s Energy Strategy until 2030, with a 2050 horizon, the above numbers will be undoubtfully subject to changes as the Bulgarian Energy Minister has recently stated that the 1,600 TPPs (planned to be phased out until 2026) will be kept operational on seasonal basis (autumn and winter) until 2040-2045.
In addition, the commercial deployment of green hydron production facilities has been announced as a national priority whereby the so-called “Hydrogen Valley” in the Stara Zagora region is expected be completed until 2030.
In summary, Bulgaria is on a clear path toward a more sustainable and diversified energy sector, with significant opportunities for growth in solar, wind, and energy storage. Continued policy support and investment will be crucial to achieving these goals and positioning Bulgaria as a regional leader in renewable energy.
