site.btaRenewable Energy Integration and Regional Challenges Explored at Green Transition Forum

Challenges and opportunities facing the renewable energy sector in Central and Eastern Europe were discussed by participants in the panel Increasing Renewable Energy – What’s Next for RES in Central and Eastern Europe during the second day of the Green Transition Forum 5.0 in Sofia on Tuesday.

Experts from the energy sector underlined the need for better regional connectivity, streamlined regulatory frameworks, and the development of technologies such as storage systems and hydrogen. Practical barriers to the implementation of renewable energy projects in Bulgaria and neighbouring countries were also considered, alongside potential solutions for an accelerated shift to a sustainable energy model.

The forum, dedicated to green innovation and sustainability, is now in its fifth edition and will continue until June 20. The event is organized by Green Transition Forum and Dir.bg, with BTA as a media partner.

Angelin Tsachev, Chief Executive Officer of the Electricity System Operator (ESO), stressed that the operation of an effective single European energy market is impossible without well-developed infrastructure and strong intersystem connectivity. He noted that, although Bulgaria, Romania, Greece, and Hungary are part of the European energy market, prices in Southeastern Europe remain significantly higher compared to other regions of the continent. According to him, the reason is the lack of opportunities for effective energy distribution between Northwestern and Southeastern Europe. There is significant potential for solar energy production in the latter region, which often remains unused, while countries there cannot benefit from wind energy in Northwestern Europe. This, Tsachev said, is a serious and fundamental problem.

Failure to link energy systems will continue to impact regional markets, and Tsachev believes that the European Commission should address this issue. He recalled that as early as 2021, ESO conducted an analysis of electricity transmission options in Southeastern Europe and proposed two projects to establish energy corridors – running north–south and east–west. The first is to begin in Greece and pass through Bulgaria, Hungary, Slovakia, the Czech Republic, and Poland to Germany, enabling the sharing of solar and wind potential in these various regions. The second, initially planned to pass through Turkiye, Bulgaria, North Macedonia, Kosovo, Albania, and Montenegro to Italy, has now been expanded and is expected to start from Azerbaijan, via Georgia and Turkiye. Its aim is to utilize the energy potential of the Caspian region, including leveraging the time difference between geographical zones to better cover renewable energy peaks.

Tsachev also noted the need for the construction of storage systems, which are key for the efficient use of large volumes of renewable energy. ESO has already signed preliminary contracts for over 7,000 megawatts of storage systems with a combined capacity exceeding 21,000 megawatt-hours. Many of these projects are at an advanced stage of development. Expectations are that in the next year and a half, between 5,000 and 10,000 megawatt-hours of storage capacity will be built in Bulgaria. Although Bulgaria has well-developed intersystem connectivity with a cross-border capacity of over 4,200 megawatts, for serious progress in renewables, storage, and low-carbon base capacity, this figure must be increased to at least 10,000 megawatts.

Andreas Chollet, Head of Development and Regional Manager for Bulgaria at wpd Europe, said Bulgaria is experiencing a solar energy boom – a trend seen in other European and global markets. He said wind is an important complementary energy source, and in Romania it is already highly valued. In Bulgaria, however, the procedures for environmental impact assessment are burdensome, and municipalities often delay processes, leading to project postponements. Chollet acknowledged that wind turbines have some impact on nature, but stressed that, even so, they should not be rejected, as in Germany their benefits are already apparent – with 30% of electricity produced from wind.

Bozidar Dedus, co-founder of the H2 Croatia Association for the Development and Application of Hydrogen Fuel Cells, observed that hydrogen is a particularly important energy source being used ever more successfully in Croatia. He believes Bulgaria has both the opportunity and need to develop this sector. Croatia is already building a green hydrogen project, whose operation is due to start soon. He highlighted the importance of considering the entire supply chain – not only production, but also storage and transmission of hydrogen. The country is also working on other projects related to hydrogen production from waste materials such as plastic. The Northern Adriatic Hydrogen Valley is also active, and in Croatia there are around 60-70 projects awaiting funding. The main challenges remain the high cost of green hydrogen and electrolysis installations, but these prices are gradually falling. Dedus said state support is essential to accelerate this process.

Climate and Energy Programme Lead at World Wide Fund for Nature Central and Eastern Europe Adam Harmat commented that more types of land should be encouraged for renewables development. According to the revised directive on renewables, countries must indicate zones where renewable capacity can be built, including those with potential conflicts. Local communities are increasingly involved and mechanisms to provide benefits for them are being sought. Harmat pointed out that even a single mayor can block a project if opposed to wind power, highlighting the importance of local support. He noted that a significant share of the needed renewable capacity can be installed on degraded land. Moreover, it is important to use existing infrastructure, for instance along motorways and railways, which would further facilitate the roll-out of renewable potential.

More than 3,500 participants from over 30 countries are attending the five-day Green Transition Forum 5.0 at Sofia Event Centre, which runs until June 20. The forum gathers EU commissioners, ministers, MEPs, Nobel Prize laureates and top executives from global companies to discuss a range of topics including energy security, sustainable finance, digitalization, and innovation in the CEE region. Prime Minister Rosen Zhelyazkov, former Italian prime minister Enrico Letta, and Professor Daron Acemoglu—2024 Nobel laureate in Economics—are among the keynote speakers.