The Bulgarian Energy Regulator adopted amendments to the Grid Connection Ordinance No 6, introduced earlier this year, which should provide more flexibility in the application process, greater support for wind projects, and further regulation of battery energy storage systems (BESS).
The changes, which were promulgated in the State Gazette on 4 October, fall under the following four main topics that together substantially change the existing legal environment.
1. According to the changes, grid connection can be initiated on an additional three new grounds:
- Preliminary land purchase or a right to build agreement;
- Decision of a municipal council on establishing the right to build (without tender);
- Approval of the respective authorities on the change of designation in terms of forest land.
The current regime remains in place where ownership rights or the right to build is required.
Such changes are expected to significantly support the development of wind projects in Bulgaria.
2. A BESS installation (when part of existing facility for consumption) is subject to a deposit/bank guarantee in the amount of BGN 50,000 per MW when the connected capacity will increase.
3. A BESS installation (when part of existing facility for production) is subject to deposit/bank guarantee in the amount of BGN 50,000 per MW when the connected capacity will increase;
4. Standalone BESS is subject to deposit/bank guarantee in the amount of BGN 50,000 per MW.
The conditions under items 2 to 4 will be a prerequisite for grid connection as provided by the Bulgarian TSO.
Such conditions will apply to anyone who holds a statement for grid connection but has not entered into a grid connection contract as of the date of entry into force of the new ordinance.
The deposit/bank guarantee will be released when the energy site is connected to the grid. The guarantee can also be used to offset against the grid connection price.
The deposit/bank guarantee under items 2 to 4 must be paid to the grid operator no later than 4 January 2025. Otherwise, the grid connection procedure will be terminated.
With the development of the BESS market in Bulgaria, the amendments are designed to encourage developers to implement their projects and terminate any speculative grid connection applications.
For more information on this ordinance and opportunities in Bulgaria’s energy sector, contact your CMS client partner or these CMS experts: Kostadin Sirleshtov, Borislava Piperkova and Dian Boev.
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