Battery Energy Storage Systems: Bulgaria’s Legal Framework & Incentives
18 March 2025Explore Bulgaria’s battery energy storage system (BESS) regulations, financial incentives and compliance with EU directives. Learn why Bulgaria is a growing market for energy storage investments.
With the increasing penetration of renewable energy in the energy source mix across global markets, the volatile supply of sources of renewable energy such as solar and wind, the charges by grid operators for use during troughs in demand or peaks in supply has drawn increasing attention to the need to invest in energy storage. Battery energy storage systems (BESS) have become vital for integrating renewable energy sources. This article examines the legal landscape surrounding BESS with a particular focus on Bulgaria, comparing it to international regulations.
Global Regulations on Battery Energy Storage Systems
United States
In the US, BESS regulations revolve around compliance with industry standards, ensuring seamless integration into the electricity grid. Agencies such as the Federal Energy Regulatory Commission (FERC), oversee market participation and grid services, with the goal of facilitating a competitive and transparent energy storage sector.
European Union Framework
The European Union (EU) targets a comprehensive regulatory framework promoting transparency, fair competition, and market integration for energy storage. The Electricity Directive (EU) 2019/944 mandates:
- Grid Access: non-discriminatory and transparent access for energy storage systems.
- Consumer Empowerment: Allowing prosumers to generate, store, and trade electricity.
- Market Design: Encouraging flexible market structures to enhance renewable energy integration.
- Regulatory Support: Removing barriers to energy storage deployment while fostering innovation.
Bulgaria’s Evolving BESS Regulations
Legislative Framework
Bulgaria has recently undertaken major regulatory reforms to encourage the adoption of BESS. In 2024, amendments to the Energy Act and Electricity Trading Rules officially recognized energy storage facilities as independent market participants. This allows BESS projects to operate as standalone systems or ones co-located with renewable energy generation installations.
Financial Incentives and Support
To accelerate BESS deployment, the Bulgarian government launched the National Infrastructure for the Storage of Electricity from Renewable Sources (RESTORE) programme in August 2024. This initiative, backed by the EU Recovery and Resilience Facility, allocates €590 million in grants to develop 3,000 MWh of energy storage capacity. The funding covers up to 50% of project costs, with a maximum grant of €75.9 million per applicant. The Bulgarian Ministry of Energy awarded BGN 526 million to 397 renewable energy projects.
Under the RESTORE program, funding is provided for the development of both large-scale standalone BESS projects and co-located storage solutions integrated with renewable energy sources. The initiative aims to enhance grid stability, reduce curtailment of renewable energy, and support Bulgaria’s transition to a low-carbon energy system. As of early 2025, the programme has received applications exceeding €2.55 billion in proposed projects, demonstrating high investor interest.
Regulatory Measures and Investment Safeguards
To prevent speculative capacity reservations and encourage serious investments, the Energy and Water Regulatory Commission (EWRC) introduced mandatory financial guarantees in September 2024. Investors must provide a deposit or bank guarantee of BGN 50,000 (€28,400) per MWh of planned capacity, before grid connection approval.
Grid Connection and Market Participation
Bulgaria’s updated regulations now allow BESS facilities to participate in energy trading and grid balancing, playing a crucial role in stabilizing the electricity grid. This is particularly significant as the country transitions away from coal-fired power plants toward a more renewable energy-dependent system.
Institutional Oversight
Key institutions overseeing BESS development in Bulgaria include:
- The Energy and Water Regulatory Commission (EWRC) – Responsible for licensing, compliance, and regulatory enforcement.
- The Ministry of Energy – Oversees policy implementation and national energy strategies.
- The Sustainable Energy Development Agency (SEDA) – Focuses on energy efficiency and secondary legislation related to BESS.
Conclusion
Bulgaria’s regulatory advancements create an attractive investment landscape for BESS projects, aligning with EU directives and providing significant financial incentives. By adopting best practices from advanced jurisdictions and refining local policies, Bulgaria is poised to strengthen its energy security and sustainability, making it a promising market for battery storage investments.