EC approves Bulgarian scheme for state aid for electricity storage

The European Commission has approved a Bulgarian scheme worth €590 million (BGN 1.15 billion) to support investments in electricity storage facilities to promote the transition to a net-zero emissions economy in line with the Green Deal Industrial Plan. The scheme was approved under the Temporary Framework for State aid in crisis and transition, adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.

The scheme will be fully financed through the Recovery and Sustainability Mechanism (RSM) following the Commission's positive assessment of Bulgaria's Recovery and Sustainability Plan and its adoption by the Council.

The aim of the scheme is to add at least 3 GWh of new electricity storage facilities to the Bulgarian electricity system, which will help integrate a higher share of renewable energy sources into the energy mix and ensure security and stability. The aid will take the form of direct grants. The scheme will be open to all storage technologies.

The Commission found that the Bulgarian scheme complies with the conditions set out in the Temporary Framework. In particular, the aid (1) will be granted through a competitive tendering procedure; (2) does not exceed 50% of the eligible investment costs; and (3) will be granted no later than 31 December 2025. The Commission concluded that the scheme was necessary, appropriate and proportionate to accelerate the ecological transition and facilitate the development of certain economic activities relevant for the implementation of the REPower EU plan and the Green Deal industrial plan, in accordance with Article 107(3)(c) TFEU. On this basis, the Commission approved the scheme under EU State aid rules.

The non-confidential version of the decision will be made available under the case number SA.114306 in the State aid register on the Commission's competition website once all confidentiality issues have been resolved.