The Ministry of Energy of Bulgaria is reportedly working on a public call for EUR 120 million in state aid for investments in battery energy storage systems of 1.5 GWh overall. Many projects have been stuck since the European Union suspended funding, but major deals are underway nevertheless, alongside the construction of large facilities.
Bulgaria has managed to renegotiate the terms of the National Recovery and Resilience Plan (NNRP) with the European Commission, allocating another EUR 120 million for support for battery energy storage systems (BESS). Instead of awarding the grants to the projects that didn’t meet the quota in the National Infrastructure for Storage of Electricity from Renewable Sources (RESTORE) call for standalone facilities, the Ministry of Energy is preparing a separate competitive procedure, Kapital reported.
The EUR 120 million is apparently intended for supporting 1.5 GWh, compared to EUR 587 million last time, for 9.7 GWh. The move is far-fetched, as all battery facilities under the NRRP are required to come online already by the end of March.
The EU has blocked payments to Bulgaria from its Recovery and Resilience Facility (RRF), adding to the crunch. It’s why the winners from the RESTORE procedure still haven’t signed their contracts. However, the next tranche could be released soon.
Developers, contractors counting gigawatt-hours in BESS projects in Bulgaria
Small players are stretched the most by the lack of financing. On the other hand, many projects are advancing even before or without the grants.
Sunterra Re has entered into a strategic partnership with Sungrow to add the China-based company’s BESS solutions to its largest three solar power plants in Bulgaria. Total storage capacity is envisaged at more than 1 GWh. The Bulgarian operator said it already has 300 MWh.
Sunotec has struck massive deals for the deployment of its BESS solutions in Bulgaria
The deal is for the MV-Power Titan 2.0 lithium-iron-phosphate batteries and accompanying equipment and software. Sunterra Re owns PV plants Dalgo Pole (208 MW) Galabovo (201.4 MW) Karlovo (115 MW) and Pleven (9.6 MW).
Sungrow has just achieved another massive deal, with Sunotec.
Solaris Holding, a joint venture of the Bulgarian-German Sunotec and the main shareholders of Eurohold Bulgaria (Evrohold), recently commissioned a large hybrid power plant.
Bulgaria is among EU’s strongest BESS markets
Two months ago, a BESS facility of 124.1 MW in operating power, the largest in the country, was inaugurated in Lovech. At the time, the Ministry of Energy claimed it was the biggest in the EU.
Of note, Bulgarian company International Power Supply (IPS) is opening a factory for battery energy storage systems near Sofia. However, the Association for Production, Storage and Trading of Electricity (APSTE) warned that the government’s recycling levy for the installation of photovoltaic panels and BESS is five to 10 times higher than EU averages.
Bulgaria is one of the most lucrative markets for battery storage in Europe, given its wide range between the highest and lowest intraday wholesale electricity price.