Two brothers establish a citizen energy cooperative in Belozem

A few years ago, in Belozem, a small village in south-central Bulgaria, two young energy pioneers set out on a mission - to start a clean energy collective similar to those they had heard existed in other European Union countries. That’s what DW describes in a special report on the subject. At that time, however, their idea collided with the Bulgarian energy legislation.

Several thousand of these grassroots energy projects are scattered across the EU, mostly in Northern Europe. In these DIY ventures, city residents not only invest together in renewables but also democratize the transition to clean energy by actively participating in it.

Initially, Belozem's interest in renewable energy had nothing to do with climate protection or income generation and was actually motivated by more basic material necessities. Bulgaria has one of the highest levels of energy poverty in the EU, with a quarter of the population unable to adequately heat their homes.

In Belozem, as in most of the country's rural areas, frequent power outages are no match for the winter frost in the village, sometimes for up to several hours a day. The lack of energy also shuts down electric well pumps, cutting off access to water.

Two brothers with a mission

We wanted to find solutions to our problems as a community," Mihail Georgiev told DW. With his brother Tsvetan, who, like Mihail, is a little over 30, they began looking for ways to make this happen.

Mihail became interested in environmental issues while studying in the UK. In 2018, he and Tsvetan, who is an engineer, started their own consulting firm. Today they live in Plovdiv, a large city near Belozem, however, they also own a property in the village.

The brothers' experience as entrepreneurs did not help their venture much, as Bulgarian legislation did not allow energy communities at the time. Although Bulgaria, like every EU member state, has the obligation to pass legislation providing a legal basis for energy communities by 2024, citizen energy cooperatives only became legal in October 2023.

International solidarity

In need of advice, the Georgiev brothers turned to a pan-European popular movement demanding energy democracy. NGO experts in Bulgaria's capital Sofia and in Brussels support them in their quest to move forward, regardless of the legal vacuum.

Crucial to the project was REScoop.eu, a Brussels-based European federation of citizen energy cooperatives that works with hundreds of energy start-up communities across the continent.

Many similar initiatives elsewhere have gone through this process, so they have the know-how to support newcomers," explains Stavroula Papa from REScoop.eu.

Supplying energy to the grid

The brothers must first set up a company to register as an energy producer. This means they can attach solar panels to their roof and sell electricity back to the grid authorities.

The ability to supply their own power to the market is what separates them from over 9,200 solar energy producers in Bulgaria, who generally consume their own product.

Starting small, seeking change

Despite stellar conditions for solar and wind power, Bulgaria currently covers just under 19% of its energy supply through renewable sources. In 2022, the country experienced a small solar boom, but most of its green energy still comes from hydroelectric power generation.

Kristian Dimitrov of Greenpeace Bulgaria says that his compatriots find it difficult to navigate DIY energy production:

People here are used to a simple way of getting electricity - they pay and the utility provides the power."

The European Commission believes that Georgievs project, called Izgrei (Rise and Shine), could be the beginning of something much bigger in Bulgaria.

Izgrei is one of the community-based energy initiatives driving change from the ground up,” it says on its website.

The two brothers started with just nine solar panels and four co-owners. The initial investment was 7,500 euros. The system powers the two-story house where it is installed, and the surplus is sold to the grid.

Serving the local community

From the outset, Izgrei set out to be an energy community that embodies the principles of its larger citizen energy peers in Northern Europe, some of which have thousands of members.

This means that membership is open to anyone in the area who wants to invest and that members control the project democratically. The cooperative must also take the interests of the community at heart, and not just the interests of the investors.

The Belozem village council is enthusiastic about the creation of the first clean energy community in Bulgaria and is even more excited about its expansion and the possibility that the revenues from the project will revitalize the village, for example in the form of investments in road repair.

A long road ahead

The Bulgarian Renewable Energy Act amendments indicate that energy cooperatives can now be set up there. The changes accelerated the process of obtaining permits for green energy production and allowed citizen energy communities to sell excess electricity as legal entities.

But experts say the law is nowhere near complete. According to Ventzeslava Kozhuharova from the non-governmental organization "Friends of the Earth Bulgaria", the specific procedures are not well described in the law. She adds that it does not state how to create an energy community, only that one can exist.

Technical details and specifications are missing," agrees Greenpeace's Dimitrov, who points out that the EU directive states that the operation of energy communities must be both legal and possible.

A ray of hope

Izgrei and Greenpeace are working with lawmakers to improve the law. The two brothers are also producing a guide for the energy communities in Bulgaria and doing advocacy work. The EU initiative for citizen-led energy renewal is helping them develop a business model and reach out to the community.

What works in Belgium is not necessarily applicable in Bulgaria," says Mihail Georgiev, who keeps in touch with his peers from Northern Europe. "But the new law is a ray of hope. Now Bulgarians can know that there is such a thing as an energy community."

Translated by Tzvetozar Vincent Iolov