January 22, 2026
by in News

IRENA: Global daily flexibility needs are quadrupling by 2050

In IRENA’s Planned Energy Scenario at the global level, electricity system flexibility needs on a daily timescale are four times higher in 2050 than in 2019. In the weekly and monthly timescales, the energy required for the purpose grows by three and 2.5 times, respectively. As for the 1.5°C Scenario, implying a much higher share of renewables, the daily flexibility needs jump ten times by mid-century, versus six times for both remaining segments.

Electrification of end-use energy, large-scale deployment of distributed energy resources and the emergence of large new electricity loads from data centres are increasing demand and adding new layers of complexity. It means power systems will need stronger grids and more flexibility to ensure that electricity is available when and where needed and at the lowest possible cost, the International Renewable Energy Agency (IRENA) pointed out in a brief called Flexibility for a secure and affordable power sector transformation.

Aside from buildings and transportation, new demand is coming from the growing adoption of artificial intelligence (AI), driving the expansion of data center capacity. In 2024, data centers consumed 1.5% of electricity. The International Energy Agency expects the share to double by 2030.

The share of variable renewable energy is increasing – wind and solar power in particular. Demand patterns become more complex, so the potential for mismatches between supply and demand is likely to grow, becoming more frequent and significant. It highlights the increasing importance of system flexibility. It is the capacity to respond to expected and unexpected fluctuations in the demand for and supply of electricity in a cost-effective manner.

Some forms of flexibility act automatically to keep the system stable, while others can be scheduled and operate over hours, days or even seasons

Insufficient system flexibility can result in excessive curtailment or, in market-based systems, negative electricity prices. It can also result in shortages, jeopardising the reliable supply of electricity.

System flexibility is needed by the power system to adjust to the variability of generation and demand patterns across different timescales. Some forms of flexibility act automatically within seconds to keep the system stable, while others can be scheduled in anticipation and operate over hours, days or even seasons, through market adjustments and operational and resource planning.

Network flexibility, which isn’t covered in IRENA’s brief, is different. It is the capacity to adjust for grid availability by means of preventing or solving congestion or voltage issues.

Required flexibility depends on numerous factors

In the timescale of seconds to minutes, flexibility is needed to maintain the balance during sudden changes in demand or supply, such as the
disconnection of an interconnector or a major load or generator. The hours and days timescale has daily ups and downs of solar and wind generation alongside the peaks and troughs in demand throughout the day.

In the weeks and seasons segment, flexibility enables covering longer weather patterns caused by changes in the season or low-wind periods. In power systems mainly supplied by renewables, flexibility is also needed at inter-annual timescales. The main factors are climate-driven variations in resource availability. It especially concerns hydrology, but also wind and solar, as well as year-to-year differences in seasonal heating and cooling demand.

In power systems mainly supplied by renewables, flexibility is also needed at inter-annual timescales

Flexibility is not a single asset or function; instead it corresponds to a capability provided by a portfolio of different technologies, operational practices and market mechanisms. The required level of flexibility in a power system depends on, among other factors, the prevailing generation mix, geography, power sector structure and affected timescales.

Storage, demand-side management (DSM), interconnections and dispatchable resources each contribute differently.

Advances in forecasting and the introduction of shorter dispatch intervals, scheduled closer to real-time operation, allow more frequent and precise adjustments of generation and demand before electricity is delivered. One example are intraday markets complementing day-ahead markets.

Electricity must become main energy carrier by mid-century to keep global warming in check

In IRENA’s 1.5°C Scenario, the energy transition will be driven by the deployment of renewable energy, improvements in energy efficiency and the electrification of end-use sectors. The aim is to limit global warming to 1.5 degrees Celsius by 2100.

Electricity would need to become the main energy carrier by 2050. It would account for over half of total final energy consumption. The 2022 level was 23%.

Global electricity generation is projected to be 36% higher in 2030 and three times higher in 2050 than in 2023. Renewable resources would supply 68% of electricity in 2030 and 91% in 2050. Renewables would account for 77% of total installed power capacity in 2030 and 94% in 2050.

In the same setting, 70% of electricity generated in 2050 comes from wind and photovoltaics, taken together. In IRENA’s Planned Energy Scenario, not projecting full decarbonization, the level is 53%.

In IRENA’s 1.5°C Scenario, the share of electricity in total final energy consumption more than doubles by 2050, surpassing 50%

Flexibility needs are calculated as total cumulated annual energy deviation from the average net load (which excludes variable renewable energy generation).

In the 1.5°C Scenario, the power sector requires ten times more flexibility in 2050 than in 2019 to manage the daily variability of net load. In terms of share of annual electricity demand, the authors observed a surge to 30% from 7%. Flexibility needs for managing the variability in weekly and monthly timescales are both six times higher.

In IRENA’s Planned Energy Scenario, daily flexibility needs in 2050 are four times higher. In the weekly timescale, the level triples from 2019, and the monthly item is 2.5 times higher.

IRENA Global daily flexibility needs quadrupling by 2050
Photo: The height of bars indicates flexibility requirements in terawatt-hours per year. Purple horizontal markers show flexibility needs as a percentage of annual electricity demand. (IRENA)

Batteries perform best in daily segment

Battery energy storage is the most effective in addressing daily flexibility needs, the report finds. It is only 24% as effective at meeting weekly needs and 12% as effective for monthly needs.

Interconnections and LDES are effective on the weekly and monthly scales

Interconnections are the most effective in addressing weekly flexibility needs, but also 98% as effective for monthly needs. As for the daily segment, the coverage is just 28%.

The numbers for long-duration energy storage (LDES) solutions are similar. Compared with addressing weekly flexibility needs, LDES is 90% as effective for monthly needs and 34% as effective in the daily item.

Post Views:97
January 20, 2026
by in News

IRENA: Global daily flexibility needs are quadrupling by 2050

In IRENA’s Planned Energy Scenario at the global level, electricity system flexibility needs on a daily timescale are four times higher in 2050 than in 2019. In the weekly and monthly timescales, the energy required for the purpose grows by three and 2.5 times, respectively. As for the 1.5°C Scenario, implying a much higher share of renewables, the daily flexibility needs jump ten times by mid-century, versus six times for both remaining segments.

Electrification of end-use energy, large-scale deployment of distributed energy resources and the emergence of large new electricity loads from data centres are increasing demand and adding new layers of complexity. It means power systems will need stronger grids and more flexibility to ensure that electricity is available when and where needed and at the lowest possible cost, the International Renewable Energy Agency (IRENA) pointed out in a brief called Flexibility for a secure and affordable power sector transformation.

Aside from buildings and transportation, new demand is coming from the growing adoption of artificial intelligence (AI), driving the expansion of data center capacity. In 2024, data centers consumed 1.5% of electricity. The International Energy Agency expects the share to double by 2030.

The share of variable renewable energy is increasing – wind and solar power in particular. Demand patterns become more complex, so the potential for mismatches between supply and demand is likely to grow, becoming more frequent and significant. It highlights the increasing importance of system flexibility. It is the capacity to respond to expected and unexpected fluctuations in the demand for and supply of electricity in a cost-effective manner.

Some forms of flexibility act automatically to keep the system stable, while others can be scheduled and operate over hours, days or even seasons

Insufficient system flexibility can result in excessive curtailment or, in market-based systems, negative electricity prices. It can also result in shortages, jeopardising the reliable supply of electricity.

System flexibility is needed by the power system to adjust to the variability of generation and demand patterns across different timescales. Some forms of flexibility act automatically within seconds to keep the system stable, while others can be scheduled in anticipation and operate over hours, days or even seasons, through market adjustments and operational and resource planning.

Network flexibility, which isn’t covered in IRENA’s brief, is different. It is the capacity to adjust for grid availability by means of preventing or solving congestion or voltage issues.

Required flexibility depends on numerous factors

In the timescale of seconds to minutes, flexibility is needed to maintain the balance during sudden changes in demand or supply, such as the
disconnection of an interconnector or a major load or generator. The hours and days timescale has daily ups and downs of solar and wind generation alongside the peaks and troughs in demand throughout the day.

In the weeks and seasons segment, flexibility enables covering longer weather patterns caused by changes in the season or low-wind periods. In power systems mainly supplied by renewables, flexibility is also needed at inter-annual timescales. The main factors are climate-driven variations in resource availability. It especially concerns hydrology, but also wind and solar, as well as year-to-year differences in seasonal heating and cooling demand.

In power systems mainly supplied by renewables, flexibility is also needed at inter-annual timescales

Flexibility is not a single asset or function; instead it corresponds to a capability provided by a portfolio of different technologies, operational practices and market mechanisms. The required level of flexibility in a power system depends on, among other factors, the prevailing generation mix, geography, power sector structure and affected timescales.

Storage, demand-side management (DSM), interconnections and dispatchable resources each contribute differently.

Advances in forecasting and the introduction of shorter dispatch intervals, scheduled closer to real-time operation, allow more frequent and precise adjustments of generation and demand before electricity is delivered. One example are intraday markets complementing day-ahead markets.

Electricity must become main energy carrier by mid-century to keep global warming in check

In IRENA’s 1.5°C Scenario, the energy transition will be driven by the deployment of renewable energy, improvements in energy efficiency and the electrification of end-use sectors. The aim is to limit global warming to 1.5 degrees Celsius by 2100.

Electricity would need to become the main energy carrier by 2050. It would account for over half of total final energy consumption. The 2022 level was 23%.

Global electricity generation is projected to be 36% higher in 2030 and three times higher in 2050 than in 2023. Renewable resources would supply 68% of electricity in 2030 and 91% in 2050. Renewables would account for 77% of total installed power capacity in 2030 and 94% in 2050.

In the same setting, 70% of electricity generated in 2050 comes from wind and photovoltaics, taken together. In IRENA’s Planned Energy Scenario, not projecting full decarbonization, the level is 53%.

In IRENA’s 1.5°C Scenario, the share of electricity in total final energy consumption more than doubles by 2050, surpassing 50%

Flexibility needs are calculated as total cumulated annual energy deviation from the average net load (which excludes variable renewable energy generation).

In the 1.5°C Scenario, the power sector requires ten times more flexibility in 2050 than in 2019 to manage the daily variability of net load. In terms of share of annual electricity demand, the authors observed a surge to 30% from 7%. Flexibility needs for managing the variability in weekly and monthly timescales are both six times higher.

In IRENA’s Planned Energy Scenario, daily flexibility needs in 2050 are four times higher. In the weekly timescale, the level triples from 2019, and the monthly item is 2.5 times higher.

IRENA Global daily flexibility needs quadrupling by 2050
Photo: The height of bars indicates flexibility requirements in terawatt-hours per year. Purple horizontal markers show flexibility needs as a percentage of annual electricity demand. (IRENA)

Batteries perform best in daily segment

Battery energy storage is the most effective in addressing daily flexibility needs, the report finds. It is only 24% as effective at meeting weekly needs and 12% as effective for monthly needs.

Interconnections and LDES are effective on the weekly and monthly scales

Interconnections are the most effective in addressing weekly flexibility needs, but also 98% as effective for monthly needs. As for the daily segment, the coverage is just 28%.

The numbers for long-duration energy storage (LDES) solutions are similar. Compared with addressing weekly flexibility needs, LDES is 90% as effective for monthly needs and 34% as effective in the daily item.

Post Views:61
January 20, 2026
by in News

KOSTT takes over land in Kosovo* for battery system in US-funded project

Transmission, System and Market Operator (KOSTT) of Kosovo* signed a contract with the Ministry of Economy and Municipality of Ferizaj, receiving 2.3 hectares of land for a 45 MW battery project. It is funded through the Millennium Challenge Compact, initiated in 2022 by the United States, acting through its Millennium Challenge Corp. (MCC), and the government in Prishtina.

Almost a year after the prequalification call for potential contractors, KOSTT received 2.3 hectares of land from the Municipality of Ferizaj (Uroševac) for a battery energy storage system (BESS).

The transmission system operator (TSO) of Kosovo* pointed out that the Ministry of Economy is part of the deal as well, within the Millennium Challenge Compact program with the United States.

KOSTT’s battery is for its automatic frequency restoration reserve

The site for the facility for KOSTT’s automatic frequency restoration reserve (aFRR) is near the Sojeva (Sojevo) village and Camp Bondsteel. Led by the US Army, it is the seat of the Kosovo Force (KFOR).

“The batteries will store energy when there is a surplus and return it to the grid when demand increases, for a more stable supply and more affordable costs. The Kosovo-US partnership is turning into another concrete result: infrastructure that makes energy more secure for citizens,” said Acting Minister of Economy Artane Rizvanolli.

Second part of project is for 125 MW, 250 MWh

The BESS project for KOSTT, funded by the US through its Millennium Challenge Corporation (MCC), aims to strengthen energy security, promote the transition to clean energy and reduce energy costs. The battery system would have 45 MW in operating power and a two-hour duration, translating to 90 MWh.

Overall, the agreement is worth USD 236.7 million, of which the Government of Kosovo* is providing USD 34.7 million.

MCC has earmarked more than USD 200 million for the BESS endeavor

Millennium Challenge Account Kosovo (MCA-K), the contracting authority, officially launched the program last year. In September it signed an agreement with KOSTT to implement the project from design to commissioning. The arrangement was initiated in 2022.

The prequalification call was published in late 2024. It included another battery project, for 125 MW and 250 MWh, at a location in Peja (Peć). It is supposed to be managed by a public entity that would provide services such as frequency restoration and energy arbitrage – buying electricity when prices are low, to be used later.

Total investment was estimated at USD 180 million, of which USD 46 million for the smaller BESS.

Post Views:36
* This designation is without prejudice to positions onstatus and is in line with UNSCR 1244/99 and the ICJ Opinion on the Kosovo declaration of independence.
January 20, 2026
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Bulgaria to host renewable electricity plants on Luxembourg’s behalf

Bulgaria joined Finland as a host country for the 2026 call through the EU Renewable Energy Financing Mechanism (RENEWFM). Luxembourg intends to fund renewable energy projects there, which will enable it to statistically attribute 80% of output to itself.

In the European Union, a member state that missed its renewable energy target can arrange a so-called statistical transfer, for a fee, from a fellow country that surpassed its own target. Another way is to fund power plant projects in another member state, via the EU Renewable Energy Financing Mechanism (RENEWFM).

In the first round, Finland agreed to host seven solar parks on behalf of Luxembourg. The grants amounted to EUR 27.5 million. Next time, also for Luxembourg, it got seven photovoltaic projects and Estonia got two for wind power. The beneficiaries won EUR 52 million in total.

This year, Bulgaria decided to participate with Finland, again on behalf of Luxembourg. Conveniently, the plan is for photovoltaic plants with battery storage in the country’s coal regions in transition: Pernik, Kyustendil and Stara Zagora. The investments are aimed at ensuring long-term employment and energy security. They complement the so-called territorial just transition plans (TJTPs) for a smooth coal phaseout.

The budget for the forthcoming round amounts to EUR 55 million

Bulgaria applied through the call that the European Commission’s Directorate-General for Energy (DG Ener) published. The overall budget is EUR 55 million.

The facilities must operate for at least 15 years. Bulgaria provides land instead of Luxembourg, which gets 80% of the green energy certificates from production.

As for Finland, solar farms are planned again, for the upcoming round.

The European Climate, Infrastructure and Environment Executive Agency (CINEA) is responsible for conducting the calls and monitoring project implementation.

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January 16, 2026
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Eurowind Energy presents solar-wind hybrid project in Romania

Eurowind Energy plans to build its Siminoc hybrid power plant in southeastern Romania by 2028. It would consist of 24.8 MW of wind power and a matching photovoltaic capacity. The company is considering battery storage as well.

Danish renewable energy developer and operator Eurowind Energy unveiled a EUR 65 million investment in Romania. The Siminoc wind and photovoltaic park project is for 49.6 MW in total.

The site for the hybrid power plant is in Constanța county in Dobruja (Dobrogea). The historical region is Romania’s wind power hub.

Eurowind Energy said it has obtained state support for the project through the country’s contracts-for-difference (CfD) mechanism.

Annual production estimated at 120 GWh

The wind and solar power segments of the future facility in the country’s southeast would each have 24.8 MW in capacity. Siminoc’s annual output is estimated at 120 GWh, equivalent to the consumption of over 50,000 households, the company said.

The company also plans to configure a BESS unit

In its portfolio, Eurowind Energy has wind, battery storage, solar, power-to-heat, hydrogen, biogas and hybrid power plants. Founded twenty years ago, it employs 700 people and is active in 16 markets in Europe, including Bulgaria, and the United States.

Completion date clings on grid connection

According to the schedule for Siminoc, it needs to obtain the construction permit in the first half of this year, and the start of works is planned for 2027. The hybrid power plant would be commissioned in 2028, though adjustments are possible, depending on administrative procedures and the grid connection.

Importantly, Eurowind Energy revealed that it would configure battery energy storage system (BESS) equipment at the procurement phase, when it also needs to select wind turbines and solar panels.

“Siminoc is our first hybrid park in Romania and marks an important step in the evolution of the local portfolio. We no longer view projects as mere production capacities, but as assets that provide real flexibility to the energy system. Combining wind with photovoltaics and, most likely, battery storage allows us to align production to demand, reduce local variability and contribute responsibly to the safe integration of renewable energies,” Country Manager Adrian Dobre said.

Eurowind Energy Romania began its activities in 2011. It has four operational solar parks – Hălchiu, Măgurele, Pufești and Teiuș. The project pipeline amounts to 7.5 GW in various stages of development. The company expects operational capacity to reach 124 MW by mid-year.

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January 16, 2026
by in News

Eurowind Energy presents solar-wind hybrid project in Romania

Eurowind Energy plans to build its Siminoc hybrid power plant in southeastern Romania by 2028. It would consist of 24.8 MW of wind power and a matching photovoltaic capacity. The company is considering battery storage as well.

Danish renewable energy developer and operator Eurowind Energy unveiled a EUR 65 million investment in Romania. The Siminoc wind and photovoltaic park project is for 49.6 MW in total.

The site for the hybrid power plant is in Constanța county in Dobruja (Dobrogea). The historical region is Romania’s wind power hub.

Eurowind Energy said it has obtained state support for the project through the country’s contracts-for-difference (CfD) mechanism.

Annual production estimated at 120 GWh

The wind and solar power segments of the future facility in the country’s southeast would each have 24.8 MW in capacity. Siminoc’s annual output is estimated at 120 GWh, equivalent to the consumption of over 50,000 households, the company said.

The company also plans to configure a BESS unit

In its portfolio, Eurowind Energy has wind, battery storage, solar, power-to-heat, hydrogen, biogas and hybrid power plants. Founded twenty years ago, it employs 700 people and is active in 16 markets in Europe, including Bulgaria, and the United States.

Completion date clings on grid connection

According to the schedule for Siminoc, it needs to obtain the construction permit in the first half of this year, and the start of works is planned for 2027. The hybrid power plant would be commissioned in 2028, though adjustments are possible, depending on administrative procedures and the grid connection.

Importantly, Eurowind Energy revealed that it would configure battery energy storage system (BESS) equipment at the procurement phase, when it also needs to select wind turbines and solar panels.

“Siminoc is our first hybrid park in Romania and marks an important step in the evolution of the local portfolio. We no longer view projects as mere production capacities, but as assets that provide real flexibility to the energy system. Combining wind with photovoltaics and, most likely, battery storage allows us to align production to demand, reduce local variability and contribute responsibly to the safe integration of renewable energies,” Country Manager Adrian Dobre said.

Eurowind Energy Romania began its activities in 2011. It has four operational solar parks – Hălchiu, Măgurele, Pufești and Teiuș. The project pipeline amounts to 7.5 GW in various stages of development. The company expects operational capacity to reach 124 MW by mid-year.

Post Views:37
January 15, 2026
by in News

Electrification is redefining energy: Volue appoints Stephan Sieber as CEO

Volue’s new Chief Executive Officer Stephan Sieber is responsible for the expansion and transformation ahead, to unleash the company’s expertise across data and forecasting, trading, optimization and planning, and grid operations. “Volue turns complexity into advantage, and the momentum with our customers right now is just the beginning,” he stated.

Norwegian electrification software maker Volue revealed that it has appointed Stephan Sieber as CEO and stressed that it is a pivotal moment for the energy sector. In the artificial intelligence era, the company provides real-time intelligence, automation, and optimization of assets for efficiency, precision and performance, the update adds.

“Electrification is accelerating at historic speed. Weather-dependent renewable power systems are becoming more unpredictable and data-intensive, and customers face rising operational complexity. Stephan’s mandate is to extend Volue’s market leadership and drive transformation and growth, unleashing Volue’s expertise across data and forecasting, trading, optimisation and planning, and grid operations – helping energy customers turn complexity into competitive advantage,” the announcement reads.

Market at inflection point

Europe is on track to double its electrification efforts by 2030, adding as much capacity in the next five years as in the previous three decades, Volue pointed out. It noted that the surge is driven in part by the electrification of transportation and heat, and rising digital demand from AI and data centres, fundamentally reshaping energy markets.

Power systems are no longer centralized and predictable; they are becoming distributed, volatile, and data-intensive, the company underscored. Decision windows are shrinking, markets transact continuously, and success now depends on real-time intelligence, automation, and precision, Volue said. The company has more than 800 energy customers across Europe and Japan.

Volue said it had stellar organic growth last year alongside selective mergers and acquisitions.

Stephan Sieber, CEO, Volue, said: “With electrification accelerating and system complexity rising, customers need to partner with the best technology providers. Volue turns complexity into advantage, and the momentum with our customers right now is just the beginning. I’m extremely excited about where the company, the market, and our customers are, and how quickly the impact is compounding,”

Enabling performance in volatile markets

Volue operates other companies’ assets through real-time operations intelligence, enabling market anticipation and execution, and 30% of Europe’s intraday market volume is flowing through Volue Trading solutions, the company stressed. Its AI-driven optimization is influencing decisions across 500 TWh of annual generation, representing 20% of Europe’s total power production.

The company claimed it is “the dominant partner of choice” for 40% of Europe’s independent power producers in renewables integration.

“Throughout his career, Stephan has consistently delivered exceptional results, driving growth, leading complex strategic and operational transformations, and building high-performing teams in some of the most competitive markets. He has an extraordinary ability to understand customer needs, anticipate market trends, and turn opportunities into tangible, lasting outcomes, earning him a reputation as a market-proven leader,” Chairman of Volue Pete Daffern stated.

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January 15, 2026
by in News

Hidroelectrica installs battery storage facility at its Crucea Nord wind park

Hidroelectrica’s battery energy storage system (BESS) of 36 MW and 72 MWh, co-located with its Crucea Nord wind park in Romania’s southeast, is on track to come online more than a year earlier than initially planned.

The future energy hub around the village of Crucea in Romania’s Dobruja (Dobrogea) region will soon get its first hybrid power plant. Hidroelectrica, the country’s biggest electricity producer, said the BESS project at its only wind park, Crucea Nord, is 80% finished.

It means the battery storage facility is set to enter operation already in May, the state-owned hydropower plant operator said. It earlier planned to launch production in the summer of 2027.

The BESS will have 36 MW in operating power and a two-hour duration. It translates to 72 MWh in capacity. The system is co-located with a 108 MW wind park, built in 2014. Crucea Nord has been making significant losses due to unfavorable balancing obligations.

The contractors are Romania-based Prime Batteries Technology and Enevo Group

All nine units, supplied by domestic battery manufacturer Prime Batteries Technology (PBT), have been installed by December 30, Hidroelectrica revealed. The other contractor in the consortium is Enevo Group. After first setting up a small battery, the utility selected them in April through a tender.

Prime Batteries manufactures lithium-ion batteries and provides energy storage solutions for the automotive, smart grids, and industrial sectors. The startup is headquartered in Cernica near Bucharest. The other company is Romanian as well.

The deal is worth RON 79.8 million (EUR 15.7 million) excluding value-added tax.

Hidroelectrica operates 188 hydropower plants totaling 6.4 GW in capacity. According to Romania’s transmission system operator Transelectrica, the country hosts BESS facilities with an overall capability of 494 MW and a storage capacity of 913 MWh.

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January 15, 2026
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ContourGlobal installs 500 MWh standalone BESS facility in Bulgaria

A standalone battery energy storage system of 202 MW and 500 MWh is fully operational and actively participating in Bulgaria’s day-ahead and intraday electricity markets. ContourGlobal built it at its Maritsa East 3 coal plant, using the grid connection of one of its former units. Acting Minister of Energy Zhecho Stankov, who attended the inauguration, said the country added 5 GWh last year and estimated that the overall BESS capacity would hit 15 GWh by mid-2026.

Bulgaria is, with the Czech Republic, Poland and Germany, in the group of only European Union member states in which more than a fifth of electricity is still generated from coal. But the situation is rapidly changing. One of the biggest standalone battery storage installations in Eastern Europe and among the first in Bulgaria recently came online. Located within the ContourGlobal Maritsa East 3 (Maritsa iztok 3) coal power plant, the facility uses the grid connection of a former unit.

Two remained in operation, supplying electricity during periods of peak demand.

The BESS has 202 MW in operating power and a duration of 2.5 hours, translating to 500 MWh, the company said. It inaugurated the battery system in the presence of Acting Minister of Energy Zhecho Stankov.

Stankov: New BESS creates sustainable pathway for evolution of Maritsa East coal complex

The new facility is actively participating in both the day-ahead and intraday national electricity markets, supporting optimized power dispatch and improved balancing of electricity supply and demand, the update adds.

Such projects signify how innovation and existing industrial infrastructure can work together to strengthen grid stability, improve flexibility, and accelerate the integration of renewable energy sources, Stankov stressed. The investment enhances energy security, supports market-based operation, and creates a sustainable pathway for the evolution of traditional energy hubs such as Maritsa East, in his words.

According to the acting minister, Bulgaria added 5 GWh of BESS capacity last year, nearly matching the Chaira pumped storage hydropower plant. He recalled that the overall level is set to reach 15 GWh by mid-2026.

Project materialized in under nine months

The project in Maritsa East 3 received just under EUR 30 million in support through the European Union’s Recovery and Resilience Facility (RRF) and the Bulgarian National Recovery and Resilience Plan (NRRP). The company participated with EUR 44.7 million.

Spanning 2.5 hectares, the installation is part of ContourGlobal’s 3 GWh operational BESS portfolio. The company is owned by KKR.

BYD supplied the 110 battery skids for the battery system, which also includes 28 power conversion system (PCS) and transformer units. ContourGlobal progressed from the final investment decision (FID) to commercial operation date (COD) in less than nine months.

The company is developing a second BESS on the same site, with a matching capability. It has a project for a battery in combination with a solar power plant as well.

Battery energy systems allow for the storage of electricity generated from various sources, including photovoltaic and wind power plants, during periods of low demand and its release back to the grid during peak demand, which helps balance production and consumption and the stable operation of the electricity transmission system.

Coal plants switching to energy storage

AES Corp. is interested in replacing one of the boilers in its AES Maritsa East 1 (AES Maritsa iztok 1) coal plant with a molten salt reactor.

Greece’s government-controlled Public Power Corp. (PPC Group) is already building BESS facilities at its coal plants.

German utility Uniper is planning to build a battery energy storage system at its Heyden coal power plant site in western Germany with Slovenia-based energy solutions provider NGEN.

Thre months ago, International Power Supply (IPS) opened its Factory X1, with a capacity of 3 GWh per year. It is the first gigafactory in Bulgaria for battery energy storage systems. The same company is building another manufacturing facility.

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January 15, 2026
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Why CEE is one of most attractive regions for investment in new energy projects

Munir Hassan and Thomas Hamerl, partners in CMS’s world-leading energy practice, discussed the most significant developments in the renewable energy market for 2026 with Balkan Green Energy News.

There is great potential for early movers in the segments of battery storage and ancillary services, according to Munir Hassan, global head of the energy and climate change at CMS (London), and Thomas Hamerl, regional head of energy and climate change at CMS Vienna.

Interconnection and interoperability with the EU’s electricity market will enhance the region’s value for established producers and increase its attractiveness for new investors, they told Balkan Green Energy News.

Beyond grid availability and tariffs, potential investors in renewables and storage focus on the target country’s policy direction and the scalability of projects, Hassan and Hamerl explained.

Investors need advisors who are familiar with international contracts and can navigate local energy markets

Potential investors in renewables and storage do not just look for efficient support with time-sensitive grid availability and network tariffs. They appreciate legal advisors who are familiar with international contracts and can also navigate local energy markets. The current policy direction of the target country and the scalability of projects are more interesting than ever, Hassan and Hamerl asserted.

CMS’s regional footprint and its global network enable it to share expertise across jurisdictions, and its local teams contribute to regulatory initiatives. With over 70 offices worldwide, including 17 offices in CEE region, CMS supports renewable energy developers and investors. The global law firm follows policy developments that are shifting from saturated markets to the CEE region, with the aim of applying best practices and overcoming challenges and bottlenecks beforehand.

Speaking to Balkan Green Energy News, Hassan and Hamerl said companies should ride the investment wave and use opportunities as legal frameworks in Southeast Europe and the wider CEE region are advancing rapidly and opening new market segments.

At CMS’s traditional annual CEE Energy Conference (CEE Energy Conference 2025), held in London in October 2025, most investors were seriously considering to add energy storage to power plants and PPAs for industrial customers.

Data center projects are adding to demand growth in green electricity

Hassan pointed to digital infrastructure as the main driver of demand, even more in SEE than the rest of the CEE region, alongside the decommissioning of coal and gas-fired power plants.

Things are starting to move with data center projects in Slovenia, Croatia and Austria, for example, Hamerl stressed.

“Usually, data center developers are international and well-experienced, bringing technical and commercial know-how. These need not be only global hyperscalers such as Amazon, Google and Microsoft. Smaller data centre operators and telecom companies are strengthening their presence in CEE. They may all seek out the expertise and networks of local infrastructure developers,” he added.

CMS is involved in major projects throughout Southeast Europe

The changes are spurring the need for more resilience in the energy sphere and national sources. It is one of the factors behind the nuclear energy program in Poland, for shielding against geopolitical shocks, according to Hassan.

There are also nuclear power projects in Romania, including an advanced one for a small modular reactor (SMR) system, and Bulgaria, and CMS is involved in all of them. It has also contributed to deals for the giant Vifor wind power endeavor in Romania. Slovenia and Serbia are next.

Financing through debt could contribute to nuclear energy and interconnector projects

Hassan said there is a notable appetite for debt financing in CEE and suggested that the model could contribute to nuclear projects including the ones for SMRs.

“Another relevant development that we see is the development of electricity networks and even interconnectors. There’s a lot of private capital that’s looking to build electricity grids in Southeast Europe and Central and Eastern Europe. But the regimes there are designed for the existing system operators to develop these projects. The difficulty, like here in the UK and other parts of the world, is that they are unable to deliver the infrastructure quickly because they don’t have the resources and financial capability,” he asserted.

Western Europe is comfortable with the idea that private companies can own and run such assets, Hassan underscored and added that transmission upgrades in general could be financed the same way. But TSOs would typically take ownership of transmission system infrastructure including interconnectors.

EU funds would have better effect as loan guarantees

Among the investment appeal factors in CEE, Hassan highlighted the grants via the European Union’s Modernization Fund and Recovery and Resilience Facility (RRF).

“Those sorts of funds are very, very important. I think the governments need to find smart ways of effectively using that money to help create conditions in which you can get private international investment into the region, rather than simply as grant funding. If you give it as a way of, let’s say, underwriting debt, in case there’s a risk issue, that’s a better way, that kind of multiplier effect,” he stressed.

Knowhow for navigating legal frameworks in emerging market segments in CEE

The United Kingdom and other parts of Western Europe are experiencing growth of the markets for new system support services. Southeast Europe and Central and Eastern Europe may follow soon. For instance, Austria is about to introduce a capacity market. Serbia is rolling out an ancillary services market in January 2026, enabling a potential revenue stream for standalone battery energy storage systems (BESS).

“It’s not a mature market yet, but market entrants with the required experience and knowhow, will find a lot of possibilities in the region. If you want to be a first mover or an early mover, you must go there now,” said Hamerl. He added it is an opportunity for battery storage, to support the grid through the flexibility market or frequency restoration and new kinds of services, instead of just arbitrage.

It is much more expensive to expand the power grid than to use energy storage capacity available in the market

Regulatory frameworks are either in place or will very soon be in place, Hamerl noted.

“Batteries play an important role in supporting the grids and saving money because building new grids is always much more expensive than storage capacity in the market. I still see a long way to go for alternatives to batteries,” he said.

The fact is that it takes several years to build a pumped storage hydropower plant, while hydrogen and ammonia production and distribution infrastructure are not sufficiently developed yet.

Photovoltaics, BESS in sharply upward trajectory

Locations for photovoltaics in Southeast Europe are much better than in most parts of Europe, Hamerl underscored, adding that the coastal areas are particularly favorable for wind power.

For instance, experts predict the total operational solar and wind capacity in Montenegro to reach 400 MW by the end of this year. For Croatia, RES generation capacity is expected to increase from 4.7 GW in 2025 to almost 12 GW by 2040.

In Bulgaria, PV capacity jumped fivefold since 2019, to 5 GW, the law firm pointed out and emphasized the surge in both co-located and standalone BESS as well. Forecasts see the segment, currently at 600 MW, to hit 5 GW by the middle of 2026.

CMS Sofia has advised on more than 50% of all installed renewable energy capacities in Bulgaria. One of the clients, Renalfa IPP, has an investment program worth EUR 1.2 billion, involving 1.6 GW in electricity generation assets and 3.3 GWh of battery storage in Bulgaria, Romania, Hungary and North Macedonia.

CMS helping optimize regulations to suit governments as well as investors

There are obviously differences in every country of Central and Eastern Europe, but there are similarities drawing investors into the region, according to Hassan.

“They want to see the revenue risk is dealt with, the technical risks are dealt with, the political risk is kind of dealt with, et cetera. So our job as lawyers is to help people understand the frameworks, but also our local teams are helping to design some of these frameworks. To that extent, we can try and design them upfront in a way that achieves not only what the countries want, the governments want, but also what the international investors will be looking for,” he asserted.

The most important factors for investors are a clear direction of law making and scalability

In his view, the most important factors are a clear direction of lawmaking and regulation – strong policy backing, and scalability, in the sense that a company can do many more projects on the back of the first one.

Hamerl said that the waiting time for grid connection remains one of the most important elements, together with network charges. Investors seek stable grid fees or at least clarity about the pace and way of growth, he stressed.

“They are always asking us about the stability of the grid and the grid usage charges. However, in some markets there is a diversity of federal, provincial, and  local laws requiring different permits. Investors ask themselves in which province it is possible to obtain permits in time. Zoning and spatial planning is crucial too. For most of our clients, it’s nice to get subsidies, but those other issues are more important,” Hamerl asserted.

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