/SOFIA, BULGARIA, February 24, 2026, 9:30 CET, RENEWABLE MARKET WATCH™/ Axpo and Advance Green Energy have announced a long-term financial agreement to hedge the market revenues of Bulgaria’s first and largest operational battery energy storage system (BESS), located in the Balkan Industrial Park in Lovech. This partnership highlights a mutual commitment to innovation and sustainability in developing renewable energy storage solutions in the region.
Following its initiatives in Poland, Axpo is further expanding its expertise in large-scale energy storage projects, reinforcing its position in the energy transition by ensuring financial stability for storage infrastructure. Axpo Greece Managing Director Vasilis Machias said: “Through this collaboration, we are reaffirming our commitment to delivering innovative solutions that enable the growth of renewable energy and energy storage in emerging markets. This agreement reflects the shared vision between Axpo and Advance Green Energy to advance the energy transition in Bulgaria and the wider region.”
The Chairman of the Board of Directors of Advance Green Energy, Georgi Domuschiev, added: “Partnering with Axpo on this long-term agreement validates our vision as a renewable energy leader in Bulgaria. The deal provides the financial certainty we need to continue investing in grid stability and renewable integration, while serving as a blueprint for similar projects in the region.”
The Battery Energy Storage System (BESS) facility, owned and operated by Advance Green Energy AD, marked a significant milestone in Bulgaria’s energy landscape when it became operational in May 2025. As the first of its kind in the country, it is currently the largest battery energy storage system in the Balkans, showcasing the region’s advancing renewable energy technology.
This facility is not just a technological marvel; it plays an essential role in enhancing grid stability across Bulgaria. By providing reliable energy storage capabilities, the BESS enables the efficient integration of renewable energy sources, such as wind and solar power, into the national power system. This integration is crucial for Bulgaria as it seeks to transition towards more sustainable energy practices, ultimately aiming to reduce its carbon footprint and dependency on fossil fuels.
A notable aspect of the BESS project is the financial agreement forged between Axpo, a prominent player in energy trading and supply, and Advance Green Energy. This agreement illustrates the growing recognition of the need for customised financial solutions that address the unique challenges faced by renewable energy storage projects. By implementing strategies to hedge energy arbitrage revenue, the deal ensures the BESS has stable, guaranteed revenue streams. This financial stability is vital to the facility’s effective operation, bolstering its long-term profitability and reinforcing Bulgaria’s renewable energy objectives.
In recent years, Bulgaria has risen to prominence as a crucial contributor to the renewable energy sector within the Balkans. The Lovech BESS project stands as a testament to the country’s dedication to enhancing grid reliability and maximising the use of renewable energy sources. Through such initiatives, Bulgaria not only strengthens its own energy infrastructure but also sets an example for neighbouring countries in the region.
The BESS facility is anticipated to serve as a benchmark for future energy storage solutions across the Balkans. Its successful operation and positive impact on grid stability and renewable energy integration will likely pave the way for upcoming developments in energy infrastructure, ultimately driving the region toward a more sustainable and resilient energy future.
The battery energy storage system (BESS) market in Bulgaria will experience robust growth by 2030 in the co-located/behind-the-meter (BTM) and front-of-the-meter (FTM) segments. Together with the already approved at the end of April 2025, 82 projects for the construction of batteries for the storage of electricity under the Recovery and Sustainability Plan for nearly BGN 1.2 billion (€ 600 million), awaiting the signing of contracts, and 30 reserve projects for which additional money is still being sought through the new chapter of the plan – RePowerEU, Bulgaria intends to become a balancing force in the region.
By the end of 2028, Bulgaria is expected to install between 19 GWh and 28 GWh of new battery energy storage systems, according to the latest update of the Central East and South East Europe Battery Energy Storage System (BESS) Market Outlook 2025 ÷ 2034.
For a brief review about the key topics on the Bulgarian energy storage market, please access it here: Bulgaria Battery Energy Storage System (BESS) Market White Paper 2025
For more detailed information and answers to your questions about the Bulgarian energy storage market, a list of tender-winning projects for 2024/2025 YTD and their owners, and related content, you may read here: Bulgaria Battery Energy Storage System (BESS) Market Outlook 2025 – 2034
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