A draft amendment to the Renewable Energy Sources Act (“RESA”) has been published, opening a whole new chapter in Bulgaria’s green policy. The aim is synchronisation with the European framework for green transition and setting new targets for 2030 related to Bulgaria’s EU commitments regarding energy transition and climate neutrality. The changes are significant for energy companies, industry, construction sector and transport.

Key highlights

1. Institutional support for green energy purchase agreements (PPAs)

The draft act provides for measures to facilitate the use of long-term contracts as a legal instrument for purchasing electricity from renewable sources. This includes an assessment of administrative and financial barriers and opportunities for the application of credit guarantees. The aim is to reduce investment risk and create a stable market for green energy.

2. Priority areas for Renewable Energy Sources (“RES”) and integrated planning

The concept of “priority areas” for the construction of new RES capacity and accompanying storage and connection infrastructure is being introduced. Specific rules and mitigation measures for the protection of the environment and biodiversity will apply in these areas. It is planned to publish mapped information for the sake of transparency and public participation.

3. Specific targets in the buildings, industry, and transport sectors

• Buildings: An indicative target is introduced for at least 49% of energy in the building sector to come from renewable sources by 2030. The Minister of Regional Development will have new powers to establish technical rules and support schemes.

• Industry: measures are planned to promote the use of green energy, including through training and qualification in small and medium-sized enterprises.

• Transport: A minimum share of 29% of energy from RES by 2030 is set, as well as the introduction of obligation schemes for fuel suppliers and a mechanism for green electricity credits in transport.

4. Higher indicative national targets

The draft act significantly raises the indicative national targets, for example for the share of energy from renewable sources in transport (from 14% to 29%), and introduces requirements for the use of hydrogen from renewable sources in industry and maritime transport. In addition, a 5% share of innovative technologies for RES is set for 2030.

5. New rules for biomass and sustainability

In the field of biomass, stricter sustainability criteria are being introduced and financial support for the use of forest biomass is being limited, except in specific cases (e.g., regions undergoing a just transition or for CO₂ capture and storage). District heating and cooling systems also feature prominently in the draft. Operators of networks with a capacity of more than 25 MW will now be required to connect suppliers of energy from renewable sources or waste heat, unless they can prove that this is technically or economically unreasonable. This opens up the market to external producers and creates a real incentive to utilise industrial waste heat, a resource that has often remained untapped until now.

6. Strengthened role of civil society

Annual information campaigns at municipal level are planned, as well as opportunities for the active involvement of citizens and energy communities in RES projects. Third parties are granted access to district heating networks where this is economically viable.

The draft act represents the next step in Bulgaria’s green transition, aimed at the gradual integration of RES in all key sectors – energy, industry, construction and transport. Although most of the measures are indicative and some will be specified in subordinate legislation, businesses should already be planning strategic decisions and investments to meet the new requirements.