January 29, 2026, Sofia – Bulgaria is ranked third in the European Union in terms of newly installed battery energy storage capacity in 2025, becoming one of the fastest-growing markets in Europe. In just one year, the country achieved growth exceeding 1,100%, according to data from the annual report on the EU energy storage market published by SolarPower Europe (the European Photovoltaic Industry Association).
From approximately 200 MWh of installed capacity in 2024, Bulgaria reached nearly 2,500 MWh by the end of 2025. Capacity is expected to increase four to fivefold this year, with over 10,000 MWh of batteries currently under construction in the country, funded under the National Recovery and Resilience Plan (NRRP).
This development in Bulgaria comes against the backdrop of a record year for the European Union, in which over 27 gigawatt-hours of new batteries were installed – a 45% increase compared to the previous year. Bulgaria ranks third behind Germany and Italy, with a 9% market share in 2025.
Total energy storage capacity in Europe is already ten times greater than in 2021. Analyses by SolarPower Europe indicate that by 2030, this capacity must increase tenfold again to ensure the stability of electricity systems and an accelerated transition to clean energy.
“This pace clearly shows that batteries are no longer a novelty or a technology of the future. They are a key element of today’s energy sector,” commented Nikola Gazdov, chairman of the Association for Production, Storage, and Trading of Electricity (APSTE).
Bulgaria – Not Just a Market, but an Industrial Player
In 2025, the country marked another strategic achievement: Europe’s first gigafactory for battery systems began operations in Bulgaria, having received strategic status under the European regulation on zero-emission industries – NZIA. This places the country among the few EU nations that are simultaneously implementing and producing key technologies for the energy transition.
Bulgarian construction and engineering companies also reported a successful year. A Bulgarian company is the leading integrator of large solar power plants and industrial batteries in Europe, and together with dozens of other domestic firms, it is implementing projects across Europe, establishing Bulgaria as a benchmark for quality and expertise in the sector.
“For countries like Bulgaria, the energy transition is first and foremost an economic issue, not an abstract climate goal,” Gazdov emphasizes. “Electricity from renewable sources is extremely cheap. This makes the industry more competitive, attracts investment, and preserves jobs.”
According to him, renewable energy sources have another key advantage: “Renewable energy is a local resource that enhances our energy security. No one can turn off the sun or the wind – neither Big Brother from the East nor the one from the West. This is fundamentally important in a world of crises and geopolitical tension,” adds Gazdov.
How Batteries Lower Electricity Bills
Market data shows that electricity exchange prices are lowest during the day, when the sun produces the most power, and rise in the evening – when consumption is highest.
Solar energy is already a key factor in the country’s energy mix. During the warmer months, between March and September, it provides up to and over 70% of electricity consumption during daylight hours.
“Batteries allow cheap electricity from the sun to be stored during the day and used in the evening, when it is most in demand and most expensive,” explains Gazdov. “This means lower bills precisely during the evening peak – for both households and industry.”
Sun, wind, and storage – the complete model
To ensure low and stable prices throughout the year, wind energy is also necessary, as it generates the most electricity in the evening and during the winter, when the sun is absent. The sun and wind have different profiles and complement each other naturally, while batteries are the “glue” that binds them into a functioning system.
A Serious Risk: State Production Fees (Ecotaxes)
Despite the positive news, APSTE also highlights a serious risk to the future development of renewable energy and batteries: state production fees for future recycling.
The problem lies not in the idea of recycling itself, but in the way these fees are introduced and applied in Bulgaria. Their rates are between 5 and 10 times higher than those in other European countries. Among the most striking differences are:
- 460 euros/ton for photovoltaic panels in Bulgaria, compared to 40 euros/ton in the Netherlands
- €2,800/ton for lithium-ion batteries, compared to €600/ton in Hungary and €300/ton in Romania
As a result, instead of providing incentives, this leads to a significant price increase – solar panels become up to 35% more expensive, and batteries – by nearly 20%.
According to data from the Ministry of Environment and Water, Bulgaria lacks the infrastructure to recycle these technologies, and the production fee is punitive in nature, with no connection to actual future costs for recycling. This creates a paradox in which businesses pay high fees today, with no guarantee of actual recycling in 15-30 years and no mechanism for accountability or oversight.
“Bulgaria is at a decisive moment in its energy transformation,” summarizes Nikola Gazdov. “Cheap, predictable, and local energy is a competitive advantage. Bulgaria has a chance to use it. We are leading in energy storage and have real potential to become a key balancer in the region. To maintain and strengthen this position, we need predictable rules, sensible regulations, and policies that encourage – rather than hinder – clean energy.“
