EBRD finances major battery energy storage project in Bulgaria

• EBRD finances major battery energy storage project in Tenevo, south-eastern Bulgaria
• Bank lends €30 million as part of a €60 million financing package with Raiffeisen Bank International AG
• Battery energy storage projects strengthen grid stability and support integration of large-scale renewable energy

The European Bank for Reconstruction and Development (EBRD) is providing a €30 million loan to Tenevo Solar Technologies for the development of a major battery energy storage project in south-eastern Bulgaria. The financing is being complemented by €30 million in parallel funding from Raiffeisen Bank International AG (RBI).

The €60 million package will finance the construction and operation of a battery energy storage system (BESS) at Tenevo, one of the largest battery storage projects in Bulgaria. The new facility will have a power capacity of 246 MW and be able to store 512.5 MWh of electricity.

The BESS facility will be co-located with an existing 242 MWp solar photovoltaic (PV) plant (also financed by the EBRD and RBI), and a 65 MW battery installation capable of storing 260 MWh of electricity. It will increase energy storage capacity at the site, enhancing grid stability and supporting the integration of additional clean energy into Bulgaria’s power system.

Tenevo Solar Technologies is a long-standing client of the EBRD. Previously the Bank provided €50 million to build and operate the fully merchant Tenevo solar PV plant. The project was supported by first loss risk cover deployed under the EBRD’s InvestEU Framework for Sustainable Transition.

As Bulgaria accelerates its energy transition and reduces its reliance on fossil fuels, renewable energy generation and battery storage are becoming increasingly important for the decarbonisation of the power sector, improving flexibility and strengthening energy security.

The rapid growth of battery storage capacity, which is exceeding 6.2 GW / 19 GWh according to latest estimates, is one of the country’s most significant energy transition achievements, positioning Bulgaria among the regional leaders in terms of renewable energy integration and decarbonisation.

From 2023, the EBRD worked with Bulgaria’s Ministry of Energy on the design of grant schemes, competitive allocation and technical verification to support renewable energy and electricity storage projects under the country’s Recovery and Resilience Plan. September 2026 marked the successful completion of these crucial schemes, which have transformed Bulgaria’s renewable energy market.

Manuela Naessl, EBRD Head of Bulgaria, said: “Bulgaria has made remarkable progress in deploying battery storage, and this project is another important step in that journey. By increasing the system’s flexibility and helping to integrate more renewable energy, Tenevo will contribute to a more resilient, secure and sustainable power sector. Supporting investments of this kind is central to the EBRD’s commitment to Bulgaria’s green transition.”

The EBRD is a leading institutional investor in Bulgaria, having invested almost €5.3 billion in the country through 330 projects to date, with a strong focus on private sector development, competitiveness and the green economy transition.