Brussels, 29 November 2024
The European Commission has approved a €590 million (BGN 1.15 billion) Bulgarian scheme to support investments in electricity storage facilities to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework (‘TCTF’), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.
The scheme will be fully funded through the Recovery and Resilience Facility (‘RRF’) following the Commission’s positive assessment of Bulgaria’s Recovery and Resilience Plan and its adoption by the Council.
The purpose of the scheme is to add at least 3 GWh of new electricity storage facilities to the Bulgarian power system, which will help to integrate a higher share of renewable energy sources in the energy mix and to guarantee security and stability. The aid will take form of direct grants. The scheme will be open to all storage technologies.
The Commission found that the Bulgarian scheme is in line with the conditions set out in the TCTF. In particular, the aid (i) will be granted through a competitive bidding process; (ii) not exceed 50% of the eligible investment costs; and (iii) will be granted no later than 31 December 2025. The Commission concluded that the scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance to implement the REPower EU Plan and the Green Deal Industrial Plan, in line with Article 107(3)(c) TFEU and the conditions set out in TCTF. On this basis, the Commission approved the scheme under EU State aid rules.
More information on the TCTF can be found here. The non-confidential version of the decision will be made available under the number SA.114306 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
Source – EU Commission