Background information

The Ministry of Innovation and Growth announced a call for proposals for the implementation of investments by final beneficiaries BG-RRP-3.006 "Construction of new Renewable Energy Sources (RES) for self-consumption in combination with local energy storage facilities in enterprises". This measure is within the national Recovery and Resilience Plan.

Content of measure

The procedure is targeted to micro, small and medium-sized enterprises, small companies with medium market capitalisation (up to 499 employees) and companies with medium market capitalisation (up to 1,500 employees). They can be from all sectors of the Bulgarian economy except 'Agriculture, forestry and fishing', 'Production and distribution of electricity, heat and gaseous fuels', 'Financial and insurance activities' and part of 'Manufacturing' (part of 'Manufacture of food products' and 'Manufacture of beverages').

The aim of the procedure is to provide grants for construction of new renewable energy sources (photovoltaic systems) of up to 1 MW for self-consumption, combined with local energy storage facilities (batteries), in order to encourage the transition of the private sector to environmentally friendly activities.

According to the Minister of innovations and growth Mr. Pulev the budget of the procedure is BGN 200 million. Together with the team of Deputy Prime Minister Pekanov the ministry managed to increase the budget from the originally set BGN 20 million to BGN 200 million. After 15 March 2023, the Energy segment of the Recovery Plan will be renegotiated.

Use of measure

A list of the proposals accepted for funding has been published at the end of September 2023. Out of the 527 proposals for investment under the procedure, a total of 421 were accepted for funding. For implementation of the approved for funding proposals, it is foreseen that the Directorate General "European Competitiveness Funds", as the Monitoring and Reporting Structure of the Economic Transformation Programme, Component 3 "Smart Industry" of the National Recovery and Resilience Plan of the Republic of Bulgaria will provide funds from the Mechanism in the amount of EUR 60,615,096 (BGN 118,552,824).

Target groups

Workers	Businesses	Citizens
Does not apply to workers	SMEs	Does not apply to citizens

Actors and funding

Actors	Funding
National government EU (Council, EC, EP)	European Funds National Recovery and Resilience Facility

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Unknown	Unknown

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Peak or cross-sectoral level

Involvement

This is the third open measure for businesses under the Recovery and Resilience Plan. Open public consultations about this measure were available and popularised by the social partners websites, as well as the call for proposal. The proposal by the Association of Bulgarian Employers' Organisations (AOBE) for budget increase has been supported by the Ministry Council (25 January 2023).

Views and reactions

The more general comments by representatives of employer organisations were that there is limited interest in such measures by the companies. The reason is that the money will come slowly in the form of a refund. It also requires getting all the permits without knowing if one company will be approved for funding, said Shteryu Nozharov from Bulgarian Industrial Association.

According to economist Mihail Krastev, the Recovery and Resilience Plan cannot reshape the Bulgarian economy. "In 2021, the advance payments had to be received, the business was in great need of them. The cheap electricity that we produce and manage to sell, compensating the business with this money, may turn out to be expensive at some point," he predicted.

According to him, the "Green Bulgaria" part supports energy efficiency, the building stock and households. "The MoF's forecast for the deficit next year is comparable to the money we will receive under the Plan," he pointed out.

Sources

• 13 December 2022: MIR PUBLISHES FOR PUBLIC DISCUSSION THE PROCEDURE FOR VEHICLES AND BATTERIES FOR COMPANIES MIR PUBLISHES FOR PUBLIC DISCUSSION THE PROCEDURE FOR VEHICLES AND BATTERIES FOR COMPANIES MIR PUBLISHES FOR PUBLIC DISCUSSION THE PROCEDURE FOR VEHICLES AND BATTERIES FOR COMPANIES (www.bia-bg.com)
• 19 December 2022: PARAMETERS FOR THE CONSTRUCTION OF RESOURCES FOR OWN CONSUMPTION UNDER THE NPVU (www.bia-bg.com)
• 11 January 2023: AOBE's Opinion on the MIR Technological Modernisation Scheme: https://aobe.bg (aobe.bg)
• 19 January 2023: OPEN APPLICATION PROCEDURES NRRP (www.bia-bg.com)
• 25 January 2023: Ministry Council, Letter of confirmation (www.mig.government.bg)
• 14 February 2023: Construction of new RES for own consumption in combination with local facilities for energy storage in enterprises" (www.mig.government.bg)
• 14 February 2023: Minister Pulev to BNT: On February 14, we opened applications from renewable energy companies and batteries for local energy storage, the interest is huge (www.mig.government.bg)
• 31 August 2023: Construction of new RES for self-consumption in combination with local energy storage facilities in enterprises (www.mig.government.bg)