What are the opportunities for European funding in Kyustendil in 2025?

Kyustendil is entering a key phase of transformation with unprecedented access to European funding – for businesses, people, and the new green economy. In 2025 alone, opportunities worth over BGN 800 million will open up for projects under the Just Transition Fund, cross-border programs with Macedonia and Serbia, as well as new measures by the Ministry of Innovation and Growth. The added value is expected to come from on-the-job training, support for start-ups, and STEM education in schools.

The goal is clear: to create a sustainable economy, promote modern enterprises, and ensure a smooth social transition for people affected by the coal era.

Our goal is to have the entire resource under the Just Transition Fund opened by the end of 2025 and to provide opportunities for a wide range of investments," said Monika Stoyanova, chief expert at the Directorate-General for Strategic Planning and Programming of Regional Development at the Ministry of Regional Development and Public Works.

She and Tony Jakimovski, head of the joint secretariat, took part in the International Conference “Just Transition in Kyustendil.” The forum, co-funded by the European Union, was organized by Brand Media Bulgaria in partnership with the Municipality of Kyustendil, Elektrohold Bulgaria, and Bobov Dol Thermal Power Plant.

The panel “Capital for Change” included Natalia Ilieva, Deputy Director General of the European Funds, International Programs, and Projects Directorate at the Ministry of Labor and Social Policy, Maya Ninova, Chief Expert in the Programming, Monitoring, and Evaluation Directorate at the Ministry of Education and Science, and Iliana Ilieva, Director General of the European Funds and Competitiveness Directorate at the Ministry of Economy.

The Just Transition Fund

The fund is structured around three main areas:

• Economic transition – creation of industrial parks, photovoltaic installations, support for innovation and small businesses;
• Social transition – retraining of workers in the closing coal and energy sectors, as well as mapping the skills of those affected;
• Climate transition – energy efficiency in buildings and combating energy poverty.

The first open procedure for energy efficiency in multi-family buildings alone attracted enormous interest. With a planned budget of BGN 200 million, projects worth over BGN 455 million were submitted. Of these, 26 projects from Kyustendil have been approved for funding worth BGN 32 million.

From retraining to industrial parks

A procedure worth BGN 110 million is also underway for the retraining of employees from thermal power plants and mines. The deadline for applications is June 13, and in Kyustendil, the Bobov Dol thermal power plant and the concessionaires of local coal deposits can participate.

Until May 15, micro, small, and medium-sized enterprises can apply for a procedure for diversification of activities, with BGN 33 million earmarked for the region. The deadline for submitting projects for logistics and industrial parks is June 19, with a budget of BGN 20.5 million for Kyustendil.

Several other key procedures are yet to be opened:

• Socio-economic transformation of mining areas – BGN 475 million;
• Support for energy communities – BGN 300 million;
• Photovoltaic parks – BGN 142 million;
• Clean energy for industry – BGN 140 million;
• Research and development – BGN 137 million;
• Second retraining procedure – BGN 125 million.

A significant part of the new measures will be aligned with the results of ongoing projects to map the skills of the workers affected, which will serve as a basis for targeted retraining and employment.

Two cross-border programs with a total budget of around BGN 20 million

A new funding window is opening for micro, small, and medium-sized enterprises in Kyustendil under two European programs. In June 2025, the call for proposals under the Cross-Border Cooperation Program between Bulgaria and North Macedonia will be published, and a call for proposals under a similar program with the Republic of Serbia is already underway. Both are managed by the Ministry of Regional Development and Public Works through joint secretariats.

Our main goal is to encourage technological modernization and international cooperation between companies in cross-border areas, with an emphasis on environmental and digital renewal," said Toni Yakimovski, head of the joint secretariat at the ministry.

Bulgaria-North Macedonia Program

In June, a call for proposals will be announced under Priority 1: Integrated development of the border region, aimed at increasing competitiveness and improving the business environment. Beneficiaries can be micro, small, and medium-sized enterprises from Kyustendil and Blagoevgrad, as well as from the Macedonian regions of Kumanovo, Shtip, and Strumica. A condition is that at least 51% of the companies' capital must be privately owned and that they must have been registered before December 31, 2022.

The total budget for the procedure is €4.99 million, with 100% funding, of which 85% comes from the EU and the remaining 15% is national co-financing from the two countries. Between 2 and 4 partners can apply for each project, with at least one from each country. The amount of funding ranges from €100,000 to €300,000 per partner, or a maximum of €600,000 per project.

Eligible activities include: technological modernization (with at least 65% of the budget for equipment), development of innovative products, implementation of environmental and digital solutions, training for new skills, marketing, and internationalization.

The duration of the projects is up to 24 months. Public consultations on the application documents will continue until May 20.

Bulgaria-Serbia Program

The call for proposals under the Bulgaria-Serbia Cross-Border Cooperation Program, which also includes Kyustendil in the eligible cross-border area, has been open since March 11, 2025. The priority here is to promote the sustainable growth of SMEs and job creation through productive investments.

The total budget for the procedure is €5.63 million, with project funding ranging from €200,000 to €400,000 and for individual SMEs between €50,000 and €200,000. Projects can last between 12 and 24 months. The difference here is in the requirement for Serbian partners, who must provide 15% of the funding themselves, while Bulgarian partners receive national co-financing.

The deadline for submitting project proposals is June 11, 2025.

Digitalization, green technologies, and innovation with a budget of over BGN 450 million

Financial instruments combined with grants create new opportunities for micro, small, and medium-sized enterprises. In 2025, the Ministry of Innovation and Growth (MIG) will launch a series of new procedures aimed at supporting technological transformation, energy efficiency, and innovation in Bulgarian enterprises. Some of these will be particularly relevant for companies in the Kyustendil region, offering flexible financing and a new approach through a combination of grants and financial instruments.

We have selected only those procedures that are most relevant and applicable to businesses in Kyustendil, without overloading them with information. Our goal is for the measures to be truly applicable, effective, and with less administrative burden," emphasized Iliana Ilieva, Director of the European Funds for Competitiveness Directorate-General.

Industry 4.0: high-level digitization with up to BGN 850,000 in grant aid

The “Introduction of Industry 4.0 Technologies” procedure is aimed at small and medium-sized enterprises and aims to increase their digital maturity through the implementation of modern technologies—artificial intelligence, IoT, cybersecurity, 3D printing, digital twins, etc. Its total budget is BGN 101.8 million.

• Minimum project size: BGN 150,000;
• Maximum: up to BGN 850,000, depending on the status and aid scheme;
• Funding: Under the de minimis scheme – up to BGN 450,000 with no restrictions on intensity. Under regional aid – up to 40% non-repayable funds + own or additional funding.

For the first time, enterprises will be able to combine non-repayable aid with a financial instrument provided through the Fund of Funds and partner banks. The enterprise may choose between:

• 40% grant + 60% own contribution;
• 30% grant + 10% financial instrument + 60% own contribution;
• or 100% financing through a loan.

Facilitated digitization for micro and small enterprises – with up to BGN 50,000 in financing

The second procedure focuses on the first two levels of digitization, intended for micro and small enterprises, with a total budget of BGN 80 million.

• Funding: from BGN 5,000 to BGN 50,000;
• Aid intensity: up to 70%.

The procedure will be simplified, with a list of pre-approved IT services, including: ERP, CRM, BI, WMS systems, warehouse and logistics solutions, online stores, cybersecurity.

The application deadline will be three months. The application of simplified costs will facilitate preparation and reporting for small businesses.

Energy efficiency and RES: up to BGN 100,000 for eco-friendly renovation of production

The third procedure, also simplified, will encourage the use of renewable sources and energy-efficient equipment. The budget is BGN 126 million.

• Funding: from BGN 30,000 to BGN 100,000;
• Intensity: up to 65%;
• Eligible costs: heat pumps, insulation systems, LED lighting, photovoltaic panels and energy storage batteries, energy-saving compressors and dryers.

Science and business together: green and digital partnerships

The fourth procedure is part of the new program “Scientific Research, Innovation, and Digitization for Smart Transformation,” which aims to bring together scientific and business potential. It will support joint projects between small and medium-sized enterprises and scientific organizations or higher education institutions. Its total budget is BGN 60.8 million, and the amount of funding can vary from BGN 100,000 to BGN 1.5 million.

The aid intensity reaches up to 80 percent, with up to 75 percent for medium-sized enterprises and up to 80 percent for micro and small enterprises in Kyustendil. The procedure requires a real partnership between business and science, with eligible activities including testing and validation of innovative products and technologies, prototyping, market testing, and business model development, as well as market analysis, competitor analysis, intellectual property protection potential, and commercialization opportunities.

Two more specific funding opportunities are also forthcoming. The first is aimed at existing innovation clusters and has a budget of BGN 49 million, with a maximum value of BGN 19.5 million per project. The second is aimed at Bulgarian companies that have received the European Commission's “Seal of Excellence” – a mark of recognition for projects with high scientific potential that have been evaluated but underfunded. A budget of BGN 39 million has been allocated for these projects.

“Let's intrigue children”: 36 schools in the Kyustendil region are awaiting their STEM centers

We expect 36 schools in the Kyustendil region to establish so-called STEM centers, which “will improve opportunities and intrigue children a little more about the natural sciences,” said Maya Ninova, chief expert in the Programming, Monitoring, and Evaluation Directorate at the Ministry of Education and Science (MES). She also touched on the topic of funds invested in the Kyustendil region under the National Recovery and Sustainability Plan (NRSP).

She also touched on the topic of funds invested in the Kyustendil region under the National Recovery and Sustainability Plan (NRSP).

Funds have been invested in modernizing the educational environment, repairing and renovating dormitories, and building centers for excellence in public education and training.

There are also two projects for youth centers, one of which is planned for Kyustendil. “People have already been appointed for this project and the official opening of this center is coming up soon. The other one will be in Dupnitsa,” the expert shared.

Natalia Ilieva, Deputy Director General of the Directorate General “European Funds, International Programs, and Projects” at the Ministry of Labor and Social Policy (MLSP), presented an opportunity for improving professional qualifications, increasing knowledge and adaptability, and career development.

The operational program in question, with a total budget of BGN 50 million, provides the opportunity to receive an e-voucher from the Employment Agency's website. This voucher gives access to training for acquiring qualifications, foreign languages, digital skills, and more.

There are 428 participants from the Kyustendil region and 284 from the municipality itself.

Another measure is aimed at unemployed and inactive people.

It has a budget of BGN 34 million and is related to the creation of activation centers, psychological support, career guidance, and job search workshops. “The goal is to shorten the distance between institutions and individuals,” said Ilieva.

In Kyustendil alone, 1,286 people have already sought such assistance from Activation Centers. The PVA has allocated nearly BGN 380 million for digital skills training. These are for people with some digital knowledge who want to deepen or develop it.

The MLSP is also preparing a new measure for digital skills training with a budget of BGN 40 million, for which applications can again be submitted through the Employment Agency for e-vouchers. It is aimed at unemployed and inactive people.

Nowadays, almost every profession requires skills in using digital devices and content," Ilieva pointed out.

Co-Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the Managing Authority. Neither the European Union nor the Managing Authority can be held responsible for them.

Translated with DeepL.