MarketEnergy in Bulgaria
Company Profile

Energy in Bulgaria

Energy in Bulgaria is among the most important sectors of the national economy and encompasses energy and electricity production, consumption and transportation in Bulgaria. The national energy policy is guided by the National Assembly and the Government of Bulgaria, conducted by the Ministry of Energy and regulated by the Energy and Water Regulatory Commission. The completely state-owned company Bulgarian Energy Holding owns subsidiaries operating in different energy sectors, including electricity: Kozloduy Nuclear Power Plant, Maritsa Iztok 2 Thermal Power Plant, NEK EAD and Elektroenergien sistemen operator (ESO); natural gas: Bulgargaz and Bulgartransgaz; coal mining: Maritsa Iztok Mines. In Bulgaria, energy prices for households are state-controlled, while commercial electricity prices are determined by the market.

Energy transition
In accordance with the European Union's Fit for 55 plan to reduce greenhouse gas emissions by 55% by 2030, as well as the European Green Deal, the country is in the process of becoming climate neutral by 2050 and is thus working on reducing its greenhouse gas emissions by encouraging new renewable power investments. In addition, all of the currently operating coal power plants are expected to close by the end of the decade as they will become economically unprofitable, owing to the recent and future trend of decreasing renewable energy prices. In 2023, the Center for the Study of Democracy made a plan for climate neutrality. Bulgaria is the most energy-intensive economy in the EU. == Energy sources ==
Energy sources
Fossil fuels Natural gas Bulgaria is believed to have extensive natural gas resources but, due to a successful campaign against hydraulic fracturing on land, only Black Sea exploration is permitted, such as at the Galata gas field. In 2023, the petrochemical companies OMV and Total estimated that up to 13 billion cubic meters of natural gas could potentially be extracted from the Bulgarian Black Sea exclusive economic zone. As of 2022, domestic production of natural gas remains insignificant, at 17 million cubic meters. with a long-term contract at a price linked to the international oil price. The country imported over 90% of its natural gas from Russia via the Turk Stream pipeline under a 10-year contract, which expired at the end of 2022. In April 2022 Russia stopped piping gas to Bulgaria and Poland, due to their refusal to pay in roubles. In response to this, Bulgaria shifted to imports of liquefied natural gas. In January 2023 Bulgaria signed an agreement with Turkey to enable Bulgaria to buy LNG on the open market and for the liquified gas to be delivered to Turkey where it would be returned to a gaseous state for pumping via the Botas gas network to Bulgaria. The agreement is for 13 years use of the LNG terminals and pumping up to 1.5 billion cubic metres of gas p.a. from those terminals to Bulgaria. The agreement also allows for gas to transit Bulgaria to other European countries. December 2023 saw a Bulgaria-Serbia gas interconnector become operational, 170km long, with a 1.8 billion cubic meters of gas per year capacity, it allows gas to be supplied to Serbia from Azerbaijan, among a number of sources. Oil As of August 2023, Bulgaria imports 3 million barrels per month of Russian-produced oil and is the fourth-largest importer of Russian-produced oil in the world. Only India, China and Turkey import more Russian-produced oil than Bulgaria. Lukoil Neftohim Burgas, the biggest oil refinery on the Balkans, refines the predominant amount of the crude oil that eventually reaches the Bulgarian market as refined petroleum. The refinery is owned by the Russian multinational energy corporation Lukoil. Bulgaria received an exemption from the EU to continue importing oil from Russia, by ship, until December 2024. Part of the terms of the exemption, was that from January 2023 Lukoil will pay taxes in Bulgaria, which it had until 2022 avoided, by paying profits to Switzerland and The Netherlands, Bulgaria believes it will receive €350m in taxes per year. Bulgaria decided to bring forward the cessation of Russian crude oil to 1 March 2024. Coal In the mid-2020s over a quarter of electricity was generated from coal. Bulgaria possesses significant reserves of coal estimated at 4.8 billion tons. More than 92% of them, or 4.5 billion tons, which pollutes the air. Other lignite basins include Sofia Valley, Elhovo, Lom, and Maritsa Zapad. As of 2022, coal production was 36 million tons, of them 98% were lignite and 2% sub-bituminous coal. The mines of Maritsa Iztok accounted for 98.6% of the lignite etraction. About 97% of the coal production was utilised for electrical and thermal power generation, and further 2% were used for the production of briquettes. The EU is providing 1.2 billion euros to help a just transition to phase out coal. Renewable energy Solar power Bulgaria has a high potential for solar irradiation, especially in the southern regions of the nation. In the mid 2020s, solar energy has become the most dynamic component of Bulgaria's energy transition. Following a period of exponential growth between 2022 and 2025, the total installed photovoltaic (PV) capacity reached approximately 6 GW by the end of 2025, effectively tripling its 2020 capacity in just three years. This rapid expansion has positioned Bulgaria as one of the fastest-growing solar markets in Europe, with solar power now contributing roughly 14% to 15% of the national electricity generation. For the first time in Bulgaria, albeit for a few hours in May 2023, photovoltaics produced more electricity than nuclear and thermal power plants, providing 31% of the electricity production. There is a trend of many companies installing solar panels of own to reduce buying electricity from the grid, with a similar trend on the rise for domestic use as well. Bulgaria is also rapidly increasing its battery energy storage capacity, from about 200 MWh in 2024 to nearly 2500 MWh in 2025, or a 1100% growth, making it one EU's most dynamic markets in the sector. The capacity is expected to increase four to five times by 2026, with over 10,000 MWh of batteries being built in the country, financed by the National Recovery and Sustainability Plan. That investment allows cheap solar electricity to be stored during the day and used in the evening when demand is strongest. Wind power , Balkan Mountains Wind energy in Bulgaria has a significant technical potential, reaching some 3.8 GW to 4.2 GW for onshore projects. As of 2026, the country has an installed wind capacity of 710 MW, a figure that has remained relatively unchanged since 2012. As of 2026 it generated 1.38 TWh of electricity, or 3.44% of the total supply nationwide. The first significant wind energy boom occurred between 2008 and 2012, driven by generous feed-in tariffs. That period saw the establishment of the country's largest facilities, primarily in the wind-rich Northeastern Planning Region near the Black Sea coast, as well as in the eastern Balkan Mountains. The largest one, the 156 MW Saint Nikola Wind Farm near the town of Kavarna, was constructed in 2009 and accounts for more than 20% of the total installed capacity. Under the updated 2025 National Energy and Climate Plan, Bulgaria aims to double its wind capacity to 1,640 MW by 2040 to meet European Union decarbonization targets. In addition, there is a 132 GW of technical offshore wind potential in the Bulgarian Black Sea sector, of which 26 GW can be utilized in accessible territories with currently available technology. As of 2025 the country is adopting legislative measures to regulate the exploration and exploitation of that potential. In 2024, Bulgaria, Romania and Greece signed an agreement to promote joint initiatives in the field of offshore wind generation. Hydroelectric on the Dospat–Vacha Hydropower Cascade Hydropower has traditionally been a leading renewable source in the national energy mix. However, its share had been decreasing in favour of wind and especially solar power, with the latter taking the leading position as a renewable energy source in 2025. Hydropower share in the total electricity generation has fallen from over 10% in the early 2020s to 6.5% in 2025. They are grouped in four main hydropower cascades that include several HPPs, dams and other facilities each — Belmeken–Sestrimo–Chaira (1,599 MW) in eastern Rila and the western Rhodopes, Dospat–Vacha (500 MW) Beyond power generation, the national hydroelectric infrastructure plays a critical balancing role, stabilizing the national grid against the volatility of newer solar and wind installations, as well as in periods of peak demand. There are three operational pumped storage hydro power plants, including the Chaira PSHPP (864 MW) — the largest in Southeastern Europe, with an important function to balance short-term consumption changes or shortages in the national grid. Nuclear power Nuclear energy is a cornerstone of the Bulgarian energy system, providing a stable, low-carbon source of baseload electricity. The decision to pursue nuclear electricity production was adopted in 1956. The first nuclear research reactor was inaugurated in 1961 in the capital Sofia. The construction of the first commercial units began in 1966 at the Kozloduy Nuclear Power Plant, situated along the Danube in northwestern Bulgaria. The power plant was inaugurated in 1974 and has since been the only operational nuclear generating facility in the country. It reached a peak capacity of 3,760 MW in six reactors in the 1990s and early 2000s. By 2006 the first four reactors were decommissioned, leaving the site with two operational reactors with an installed capacity of 2,000 MW. As of 2023, it produces 16.2 TWh of electricity, or approximately 40% of the total generation, and is the country's lowest-cost electricity producer. Thus, by 2040 the country's installed nuclear capacity is projected to increase by 2,500 MW, as per the 2025 National Energy and Climate Plan. ==Heating==
Heating
, a heating power plant of Toplofikatsiya Sofia The heating sector in Bulgaria is shaped by historical central planning, geographical divides between urban and rural populations, and a significant challenge with energy poverty. As of 2019 solid fuels are the most common source, accounting for approximately 52.6% of final energy consumption for heating, followed by electricity with 38.5%, and natural gas for district heating with 6.5%. Burning wood and coal for home heating is a major cause of chronic illnesses and excess deaths in the country. However, while in rural villages, up to 95–96% of households use wood and coal, in urban areas electricity and central heating are the leading source. By 2023, as many as 71% of households were utilizing some form of electric heating, including air conditioners and radiators, a massive increase from 29% in 2011. About 20% of the population has access to district heating, the dominant company being Toplofikatsiya Sofia, which is the oldest and the largest one in the Balkans with over 430,000 clients. Geothermal heating of some schools is being trialled. As part of the National Recovery and Resilience Plan, Bulgaria has taken measures to reduce residential use of solid fuels by providing grants for energy efficient appliances, photovoltaic systems and solar collectors for own consumption, as well as pushing for energy efficiency and renovation of residential buildings. == Energy transit and infrastructure ==
Energy transit and infrastructure
In 2025, Bulgaria had 3,276 km of natural gas pipelines that includes both national and transit transmission network, supported by 11 compressor stations with a total installed capacity of about 400 MW, managed by Bulgargaz and Bulgartransgaz. There are also 345 km of oil pipelines, and 378 km of pipelines for refined products. Major operational transnational transit gas pipelines include Balkan Stream, and extension of TurkStream that transits Russian gas from Turkey to Serbia and Hungary, and the Trans-Balkan pipeline linking Ukraine and Turkey via Bulgaria. Several major projects have been canceled or aborted, including South Stream and the Nabucco pipeline. Another suspended project is the Burgas–Alexandroupoli oil pipeline that envisaged transportation of Russian and Caspian oil from the Bulgarian Black Sea port of Burgas to the Greek Aegean port of Alexandroupoli. The Russian annexation of Crimea in 2014 and its invasion of Ukraine in 2022 accelerated the completion of several vital interconnectors to diversify its sources away from Russia. The Gas Interconnector Greece–Bulgaria was commission in 2022, followed in 2023 by the completion of the interconnector with Serbia. Bulgaria is on the final stages of completing the construction of the Vertical Gas Corridor on its territory with the interconnection points KulataSidirokastro to Greece and KardamNegru Vodă to Romania expected to be inaugurated by the end of 2026. The project will facilitate LNG transit of up to 10 billion cubic meters from Greece to Ukraine and countries in Central and Eastern Europe. ==See also==
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