Bulgaria’s Battery Storage Market
Bulgaria has installed between 40 MWh and 50 MWh of battery energy storge capacity to date. However, new national legislation as well as funds provided through the European Union’s Recovery and Resilience Facility (RRF) could add another 1 GWh of storage capacity over the next two years. Currently, Bulgaria’s electricity market offers an opportunity for €110 ($122) per MWh profit on battery energy storage with two hours of discharge capacity using energy arbitrage. Rystad Energy’s analysis estimates battery system costs at a flat €60 ($67) per MWh.
Some experts argue that so far energy storage is not a major issue in Bulgaria, thanks to Bulgaria’s plentiful operational coal and nuclear capacities. However, the country needs to comply with European Union rules for emissions reduction, and the phasing out of coal plants is imminent. Given that renewable energy sources will fill the void created by shutting down coal plants, energy storage will play a critical role in energy system balancing and will dramatically increase capacity.
Another development that can boost battery storage in Bulgaria is a recent update of national legislation to include battery energy storage systems as a component of the grid. Previously, battery systems were only used for self-consumption and back-up purposes, but it is expected that new business opportunities are on the horizon because of the updated legislation.
The new legislation coupled with new financing by the European Union’s RRF means that about 1,000 MWh of new battery capacity is expected to be connected to the grid within the next two years. That capacity will be used for both solar peak shaving and grid balancing.
The Bulgarian Energy Ministry opened a tender procedure for supply of energy storage on August 21, 2024. The procedure aims to provide funding for construction and implementation of a 3,000 MWh stand-alone battery storage facility. The total amount of the grant that can be provided under the procedure is €590 million ($ 536 million).
Bulgaria borders the western shores of the Black Sea between Greece, Turkey, Serbia, North Macedonia, and Romania. It has largely shaken off its past as a Soviet satellite and is reaping the benefits of belonging to the European Union, NATO and the Council of Europe. With energy independence high on its agenda, it’s no wonder Bulgaria welcomes mega battery storage development.
Energy Consumption by source, Bulgaria
For more information regarding battery storage opportunities and the energy market in Bulgaria, please contact: Emily.Taneva@trade.gov