Expert Analysis: Green Capacities Developing Rapidly as ESO Struggles to Keep Pace with Investors

The development of green energy capacities in Bulgaria is moving so fast that the Electricity System Operator (ESO) cannot keep pace with investors, according to Dimitar Beleliev, PhD, of CERB GROUP. He noted that a major issue for the sector is that solar panels are being installed “where possible rather than where needed,” warning that the same mistake could be repeated with battery storage systems.

“I am a moderate pessimist about what lies ahead,” Beleliev stated, urging for real energy solutions to be implemented without delay. Here are the highlights from his interview with Investor.bg:

Dr. Beleliev, how do you assess the current state of the Bulgarian energy market and what challenges do we face? Does Europe have a “roadmap”?

The situation in Bulgaria is difficult, primarily due to the lack of stable rotating capacities. The system lacks the ability to balance properly during borderline situations. Generation from renewable energy sources (RES) is concentrated in large plants rather than at the micro-level, which is a mistake. Balancing should occur closer to real production and consumption. Batteries will help, but they are only an auxiliary tool. I am a moderate pessimist regarding Bulgaria’s future because we are lagging behind with real solutions.

However, I am more optimistic about Europe. The direction is correct; it just takes time—mainly for better connectivity and real integration between markets.

About Dimitar Beleliev

Dimitar Beleliev, PhD, has over 30 years of experience as an executive and investor in the energy sector. Since 2002, he has served as Chairman of the Board of Directors of Central Energy Repair Base (CERB) EAD and other energy companies. He has held management roles at Energo-Remont Holding AD, Energo-Remont Varna AD, and Energo-Remont Ruse AD. In 2020, he founded AmonRa Energy AD—a certified center for solar energy products and solutions.

A graduate of the Technical University of Sofia in Transport Equipment and Technologies, he holds a Master’s degree in Economics (Energy Business) and a PhD in Energy Security Evaluation of Bulgaria from the University of National and World Economy (UNWE). He has authored numerous publications on energy security.

How are green capacities developing in Bulgaria, and where are the “bottlenecks” for their grid integration?

It is a fact that green capacities are developing rapidly, but many problems remain. The first bottleneck is the transmission grid because the operator—ESO—cannot catch up with investors. The second is the lack of an action plan. Solar plants and batteries are being built everywhere on the principle of “where possible,” not “where needed.” The third is the lack of incentives for “prosumers.” Balancing should be shifted there—closer to consumption—which would prevent massive losses.

Are batteries the solution to the volatility of RES production?

Batteries are part of the solution, but not the primary one. They help shift energy over time and improve balancing, but without stable rotating capacities, a strong grid, and a clear logic for their location, their effect is limited. The risk is repeating the same mistake made with RES—building batteries where possible, rather than where the system needs them.

Are there obstacles or a need for regulations to support battery capacity development, or is the market doing enough?

The issue isn’t whether batteries will be built, but whether they will be built where the system needs them. This requires rules—not as restrictions, but as guidance. There must be a clear link between the grid and investments, alongside incentives to build capacity where it has the greatest impact on balancing. At the same time, the bureaucratic hurdles at ESO are notoriously heavy and often subjective. This slows down processes and creates uncertainty for investors. Without a clear framework and an efficient administration, we risk repeating the RES mistake: many projects, but not in the locations where they provide the most value.

Dimitar Beleliev is a speaker at the fourth edition of “Energy of Tomorrow,” taking place on April 21 at the Inter Expo Center. Key topics this year include grid challenges, RES development, innovation, and the battery storage boom.

Source: Investor.bg

Photo: Bulgaria On Air – Ivaylo Petrov