Wednesday, 19 August 2026
Bulgaria has adopted a new four-year energy programme setting out government priorities through 2030, with nuclear generation, electricity and gas infrastructure, storage capacity and the gradual liberalisation of the household power market forming the main elements of the plan.
Approved by the government on 12 August 2026, the programme seeks to balance security of supply and household affordability with the need to maintain competitive energy costs for Bulgarian industry. It also establishes a longer planning horizon, with a national sustainable energy strategy extending to 2050 and periodic reviews of future consumption, generation capacity and system requirements.
One of the most significant elements is the continued role assigned to nuclear power. Bulgaria intends to extend the operating life of Units 5 and 6 at the Kozloduy nuclear power plant while continuing preparations for Units 7 and 8 using Westinghouse AP1000 technology. Preparatory work towards a final investment decision for the additional units is scheduled for October 2026.
The government also intends to assess the potential introduction of small modular reactors. A national assessment of possible new nuclear projects is planned by September 2027, followed by a regulatory and administrative roadmap for SMRs in early 2028.
Coal-fired capacity will not be removed immediately from Bulgaria’s energy system. Instead, the programme envisages retaining part of the country’s coal generation capability to provide additional capacity during periods of unusually high demand or disruption. This approach is intended to accompany the economic transition of Bulgaria’s traditional mining regions rather than relying on rapid closures.
Hydropower and electricity storage represent another major part of the programme. Restoration of capacity at the Chaira pumped-storage hydroelectric facility is targeted for June 2028, while the government plans to assess further modernisation of existing hydroelectric facilities and opportunities for additional pumped-storage developments.
The strategy could generate a substantial pipeline of infrastructure investment. Bulgaria plans approximately 700 kilometres of new 400 kV transmission lines by the end of 2029, together with four new 400/110 kV substations and eight additional 400 kV switchgear installations.
Electricity distribution networks are also due to undergo further digitalisation, including wider deployment of smart metering. Legislative changes planned for September 2026 are intended to simplify connections for electricity generation, storage and consumption facilities.
Gas infrastructure remains part of the country’s diversification strategy. Transmission capacity between Greece and Bulgaria is scheduled to increase to 93 GWh per day by October 2026, while capacity towards Romania at Negru Voda/Kardam is targeted to reach 295 GWh per day by April 2027.
Expansion of the Chiren underground gas storage facility is expected to increase capacity to 1 billion cubic metres by the end of 2029. Together with electricity-network investment and cross-border connections, the projects form part of Bulgaria’s ambition to strengthen its position as an energy transit and trading centre for Southeast Europe.
Renewables will develop alongside nuclear, hydro, gas and existing conventional generation rather than through a policy centred on a single technology. Planned amendments to the Energy Act include provisions supporting decentralised generation, energy communities, hydrogen and storage, while changes to energy-efficiency legislation are intended to accelerate improvements to Bulgaria’s building stock.
This could have implications for the country’s property and development sectors. Greater access to decentralised generation, storage and energy-sharing arrangements could support investment in photovoltaic systems and battery storage associated with commercial, logistics, industrial and residential properties. Changes to building-efficiency requirements could also increase the importance of renovation programmes across Bulgaria’s existing building stock.
Another major policy issue is electricity-market liberalisation. Rather than immediately exposing households fully to market prices, the government intends to conduct a socio-economic assessment before further changes are introduced.
An information system identifying energy-poor and vulnerable households is planned by December 2026. The government will then examine potential consumer-support structures, including models under which a basic level of electricity consumption could receive more favourable pricing. A framework for phased liberalisation is scheduled for September 2027.
State-owned energy companies will meanwhile face greater scrutiny. Independent financial and management reviews are expected by October 2026, followed by common performance measures covering financial discipline, operational efficiency and governance.
The government also intends to examine whether minority interests in state energy businesses could eventually be offered through the Bulgarian Stock Exchange while retaining state control. At this stage, however, this is an assessment rather than a confirmed privatisation programme.
Workforce shortages have also been incorporated into the energy strategy. Bulgaria plans to map occupations where shortages of engineers and technical specialists could constrain investment and establish a National Programme for Young Specialists in Energy beginning with the 2027/2028 academic year. Scholarships, internships and dual-training arrangements are expected to form part of the initiative.
The scale of the programme means implementation will extend well beyond immediate legislative changes. Amendments covering energy markets and efficiency are expected during autumn 2026, while major infrastructure milestones are concentrated between 2027 and 2030.
For Bulgaria’s investment market, the programme points towards several years of capital expenditure across nuclear generation, electricity transmission, gas storage, hydropower, renewable generation, battery storage and building efficiency. The more important question will be how quickly the individual measures progress from government targets into financed and contracted projects.
If implemented broadly according to schedule, the programme would reinforce Bulgaria’s position as an increasingly important part of Southeast Europe’s interconnected energy infrastructure while maintaining a relatively diversified domestic generation base.
Source: CMS
