Bulgaria to Host Renewable Energy Plants for Luxembourg in €55 Million Initiative

Bulgaria Joins EU Renewable Energy Financing Mechanism

Bulgaria has officially joined Finland as a host country under the EU Renewable Energy Financing Mechanism (RENEWFM) for the 2026 call, facilitating the development of renewable electricity plants funded by Luxembourg. This initiative, with a total budget of €55 million provided by Luxembourg, aims to support the Grand Duchy in achieving its national renewable energy targets through a 'statistical transfer' mechanism.

Statistical Transfer Mechanism Explained

The core of this cooperation lies in the concept of statistical transfer, an accounting procedure established under the EU Renewable Energy Directive. This mechanism allows a Member State with limited domestic renewable energy potential, such as Luxembourg, to financially support renewable energy projects in another Member State. In return, a portion of the generated renewable energy is statistically attributed to the financing country's targets.

For the projects hosted in Bulgaria, Luxembourg intends to statistically attribute 80% of the output to its own renewable energy statistics, while Bulgaria will account for the remaining 20%. This arrangement does not involve the physical transfer of energy but rather the transfer of 'green energy certificates' or statistical assets.

Investment Focus on Photovoltaic Plants and Battery Storage

The investments in Bulgaria will primarily focus on the construction of ground-mounted photovoltaic (PV) plants combined with energy storage systems (batteries). These projects are strategically planned for Bulgaria's coal regions in transition, specifically Pernik, Kyustendil, and Stara Zagora. The integration of battery storage is expected to contribute to grid stabilization.

This development is intended to complement the territorial just transition plans (TJTPs) in these regions, supporting a smooth phase-out of coal and ensuring long-term employment and energy security. The facilities are mandated to operate for a minimum of 15 years.

Luxembourg's Drive for Renewable Energy Targets

Luxembourg, a landlocked country with limited space for large-scale renewable energy development, has a national target to increase the proportion of gross final energy consumption from renewable sources to 37% by 2030. To achieve this, the country has historically utilized statistical transfers, having previously entered into similar agreements with Lithuania and Denmark. The RENEWFM provides a structured pathway for such cross-border cooperation, managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA).