What funds for energy projects are provided in the new Recovery Plan?

BGN 12.6 billion from the EU and over 8.2 billion Bulgarian co-financing - this is the framework of the fourth version of the Recovery and Sustainability Plan, which was published late Tuesday night by the team of Deputy Prime Minister Atanas Pekanov. The plan has been uploaded for public discussion and awaits the views of all stakeholders such as business and trade unions. Most funds, 36.8%, or BGN 4.64 billion of European money, are provided for the projects in the "Green Bulgaria" pillar. Here are the main energy projects that our country intends to develop.

The plan envisages the participation of private investments in the projects to be about BGN 3.6 billion, and with the state it will reach BGN 4.32 billion. Thus, in practice, green investments in Bulgaria can reach a total of about BGN 9 billion. It is during the green transition that funding is mainly focused on energy efficiency and renewable energy technologies. More than BGN 1.844 billion, or 14.6 per cent of the money, have been earmarked for the renovation of the buildings. The national co-financing under this item is for BGN 621.7 million.

 There are two options - the oldest buildings will receive 100% grant funding. Those with energy class D, mainly those built between 1991 and 2001, will be able to count on 85% of the renovation money. The rest will be co-financed by the owners.

Separately, BGN 140 million are allocated for photovoltaics on the roofs of single-family houses and are not connected to the district heating or gas distribution company. Their national funding is for BGN 100 million.

The entry of green hydrogen into the energy sector will be supported by BGN 330 million, which are for the construction of infrastructure for its transmission, as well as other low-carbon fuels for power plants in coal regions. Another BGN 68.4 million is provided to support pilot projects for the production of green hydrogen and biogas.

The state will have a new gas plant at TPP Maritza East 2. It will have a capacity of at least 1000 MW and will support the plan with BGN 498.7 million. National co-financing of BGN 1.16 billion is envisaged for the project. Thus, the new gas capacity is expected to cost about BGN 1.6 billion and it is not clear where the Bulgarian financing for it will come from.

BGN 877.7 million of EU funds and BGN 1.78 billion of co-financing are provided for the construction of a minimum of 1.7 GW of RES and battery capacities. The mechanism is planned with six tender procedures in half a year, starting from January 1 next year. Each tender is for the provision of at least 285 megawatts of renewable sources. The implementation of the project will be supported by a grant for the investor with the highest capacity.

Another BGN 92.5 million is provided for a pilot project for production of energy from geothermal sources.

The plan also allocates over BGN 32.6 million for the construction of a gas pipeline to the power plants in the Maritza Iztok complex. The idea is for the chemical industry in the region of Dimitrovgrad to benefit from this gas pipeline, as well as the energy productions of Maritza Iztok. The connection will probably be made with the future interconnector between Bulgaria and Greece, which will pass nearby.

With regard to renewable energy sources, there are already specific requirements - during the construction of new renewable energy capacities, an energy storage facility will have to be provided to balance the intermittent production.

The batteries are expected to have a capacity of at least 4 hours and a capacity covering at least 25% of the total renewable energy production capacity of the plant. The construction of these 1.7 gigawatt RES capacities with batteries is planned for the end of 2025. And they must be reserved with batteries corresponding to a quarter of this capacity.

The goals set for achievement are a 25% share of energy from renewable sources in final consumption in 2024 and a 10% reduction in energy intensity in the economy. It is expected that the emission of harmful CO2 emissions into the atmosphere will be reduced by the same amount.