Bulgaria is a solar champion

Nikola Gazdov is an entrepreneur with 18 years of experience in renewable energy. He serves as Chairman of APSTE (the Association for Production, Storage, and Trading of Electricity in Bulgaria) and sits on the Board of the Romanian Photovoltaic Industry Association (RPIA). Nikola is also a Board Member of SolarPower Europe and Deputy Chair of its National Associations Committee. On the business front, he is CEO of Renergy, a technical advisory firm, and Director at Element Power, a gigawatt-scale developer of solar and battery energy storage systems.

Mr. Gazdov, we are seеing off another record summer for solar energy in Bulgaria. The market has boomed in recent years, but how would you describe it at the moment? Is there a lull?

Bulgaria has attracted over 6 billion leva of private investment in its energy sector, mainly for the construction of new solar power plants. These already cover a large part of daily energy consumption and reduce exchange prices because they produce electricity at a low cost. According to ESO (Electricity System Operator), the photovoltaics here currently exceed 5,000 MW. After the record years of 2023 and 2024, many expected the market to slow down. However, at least 2,000 MW of new projects are in an advanced stage of development or have started construction and will be implemented in the next 12-18 months.

In Bulgaria alone, 9,000 MW of photovoltaic projects are waiting to be connected to the grid. Is said grid developing at a sufficient pace to meet demand? How long does it take to connect a solar park to it?

ESO is already working on strategic programs for the modernization and expansion of the electricity transmission grid. The aim of these investments is to improve interconnection and network management, as well as to increase the capacity to connect new renewable energy sources.

Currently, connecting a solar park takes between 2 and 4 years, depending on the state of the grid in the relevant region and the need to build power lines. For wind power plants, this period is much longer, because environmental procedures there further slow down the process.

While we are having this conversation, the price of electricity on the energy exchange is once again approaching zero leva. Do such prices ​​lead to an outflow of investors in clean energy and how can solar energy maintain its place under the Bulgarian sun?

Photovoltaic capacities are being built because they are the cheapest option for generating electricity and this makes them very competitive. That is precisely why there is no outflow of investors, on the contrary - leading energy companies from Central and Southeastern Europe are just beginning to enter the Bulgarian market. Of course, the low and negative prices on the exchange are a challenge for all electricity producers. It is clear that investments in renewable energy cannot continue according to the "we build, whatever may happen" principle. A professional approach requires finding complex solutions. For example, in the future, it is unlikely that many solar parks will be implemented without batteries. Long-term power purchase agreements will also become more and more common, because they are based on mutually beneficial partnerships between renewable energy producers and large industrial consumers.

So, are batteries and long-term contracts the “cure” for negative electricity prices?

The “cure” is complex. It includes more flexibility, storage systems, incentives for industry to enter into long-term contracts, flexible consumption, new interconnections with neighbors - all this is part of the solution. But there is something else - to achieve low prices even when the sun is not shining, we need to accelerate the construction of new wind power capacities. Bulgaria is the only country in the EU that has not built a single new wind farm in over 10 years, which is absurd and must change.

Could we say that the RES sector is entering a new era with storage systems. How are they changing the market and what is yet to come?

Many things will change. Never before have we had the opportunity to store electricity on such a scale at such an affordable price. The combination of affordable batteries and cheap solar power is a perfect prerequisite for investments in storage. That’s because batteries can be charged at low rates during the day, which they can then "transfer" to the evening peak hours. This normalizes market volatility and reduces prices for industry and households. Batteries provide new capabilities for ESO to manage the system, which is key due to the increased share of variable generation in this region.

Financial support under the Recovery and Resilience Plan (RRP) further catalyzes market processes and sets a very aggressive time frame. Over 1,300 MWh have already been built, and this capacity is expected to grow to over 12 GWh by mid-2026. According to ESO, as of August 2025, contracts for 7,500 MW with a capacity of over 23,000 MWh have been signed.

More and more large enterprises are installing their own solar capacities. Does this mean new energy independence for businesses in Bulgaria and what challenges does this process face?

The heavy industry is looking for long-term low prices and increased energy autonomy. Photovoltaic plants offer both. It would not be an exaggeration to say that the Bulgarian heavy industry is the solar champion of Europe. In recent years, hundreds of solar power plants for own consumption have been built on the roofs of factories and near industrial production facilities. Many of the enterprises are already working on their expansion. Batteries are the next logical step. It is no coincidence that it was a Bulgarian industrial company that built the largest independent battery unit in the entire EU (ed. Advance Green Energy AD).

What is Bulgaria’s position on the solar and battery map of the European Union?

Bulgaria is a solar leader - not only because of the rapid growth of installed capacity, but because of the dozens of successful companies. The largest system integrator in Europe comes from Bulgaria, and the sector employs more than 10,000 workers. Unfortunately, we are at the bottom when it comes to wind. If we do not change this, we will always play catch-up to the others.

With batteries, we have a chance to be among the leaders if we realize even part of our declared capacity. The energy sector is by definition an inert system where everything happens slowly and gradually. In this context, the speed of battery development breaks all established models and puts us in a completely new environment. In less than a year, if there are no unforeseen shocks, Bulgaria will consolidate its role as a regional balancer in an asertive way.

The entry of artificial intelligence (AI) and the Internet of Things (IoT) into solar technologies has led to the creation of intelligent solutions that significantly improve energy efficiency and management. What are the specific innovations in the energy sector and are they being implemented in our country?

Energy is digitizing and this creates many benefits for businesses and consumers. In Bulgaria, we can boast of several startups that have built competitive products based on artificial intelligence. Their solutions help to better predict production, integrate storage systems and perform preventive maintenance of power plants. Electricity traders are also taking advantage of AI solutions developed in Bulgaria to optimize the management of their portfolios.

Recently, APSTE (Association for production, storage and trading of electricity) and other organizations published positions on issues related to state product fees for the recycling of solar panels and batteries. What worries you about this and do you have any suggestions for solving the issue?

The problem lies in the outdated regulatory framework, which sets disproportionately high product fees for recycling solar panels and batteries. Their levels are not related to the real costs of recovery and are between 5 and 10 times higher than comparable fees in other EU countries. In this way, the state artificially increases the cost of solar panels by 35% and batteries by nearly 20%. Investors expect predictability from the Bulgarian state, not unjustified regulatory burdens. We have submitted letters to the Council of Ministers and the relevant ministries with a request to adopt a temporary derogation for a period of up to two years. During this time, the regulatory framework should be revised to reflect the real costs of recycling and be within the average price levels for the EU.

Looking ahead, what is the future of Bulgarian energy?

The future is connected to the ongoing transformation of our energy system – more and more new renewable energy sources and batteries, development of transmission capacity and interconnection, and smart management of existing energy assets. This combination will guarantee sustainably low prices and increase our energy security.