site.btaInternational Power Supply CEO Rangelov: EUR 180 Million Battery Projects Secure EU Strategic Status

International Power Supply’s BG EXERON X-BESS project has been awarded strategic status under the European Commission’s Net Zero Industry Act, IPS chief executive Alexander Rangelov said on Saturday.

The scheme is one of five approved across Europe and is part of the company’s plan to invest about EUR 180 million in three battery-storage manufacturing facilities.

Production at Chelopechene is scheduled to officially begin on September 17. To date, around EUR 4.5 million has been invested in the project by IPS shareholders.

Meanwhile, IPS is building a second facility at the same location, scheduled to commence operations in the first quarter of 2026. This expansion will increase total capacity from 3 GWh to 4 GWh per year.

Design work for IPS’s third facility, a robotic battery manufacturing plant, is scheduled for completion by the end of the year, with construction expected to take at least eighteen months, Rangelov said.

The company is seeking funding from Brussels and is optimistic about approval due to the project’s inclusion in the European Commission’s strategic registry. The project is valued at EUR 155 million, with a grant of up to EUR 95 million anticipated from Brussels. The remainder of the required funding has already been secured through commitments from banks and private investors.

The location for the robotic factory is still being evaluated and will be determined in consultation with the European Commission. “We have identified three possible sites, with the decision based on logistical needs such as railway access, sufficient electrical power, and adequate site area,” Rangelov said. The potential sites are in the Kyustendil region, near Varna, or Burgas.

Job creation

Across the three production sites, approximately 350 jobs will be created, with up to 10% designated for highly qualified specialists. Staffing for the Chelopechene facility is already complete, and the plant is currently in test mode. Recruiting employees remains challenging, particularly in Sofia, though candidates from the surrounding Chelopechene and Kremikovtsi areas are also considered. The average salary at the Chelopechene plant exceeds the average for Sofia.

IPS’s European journey

IPS is a family-owned business, founded by Rangelov's father in 1989 at the start of the transition period. He graduated from the Higher Institute of Mechanical and Electrical Engineering (now the Technical University), and while working on his dissertation in Radioelectronics in one of the Institute's laboratories, he established IPS.

IPS began by developing and producing Bulgaria's first UPS systems and technologies for the banking sector to ensure protection against power interruptions. "This is the first Bulgarian initiative focused on electrification and energy storage. Over the past 36 years, a variety of technologies have been developed, primarily microgrid electrification solutions and energy storage systems. These technologies have been implemented in defense, oil and gas extraction, energy, telecommunications, and railway transport," Rangelov said.

The main patent for the modular structure of this system was initially registered in the USA, later in the EU and the Middle East. “Many other patents have followed, building on this initial technology,” he added.

The battery systems to be produced will support the electricity grid by providing services such as frequency regulation and inertia, assisting renewable energy integration, enabling industrial self-consumption, offering data centre backup, facilitating decentralized grid development, supporting microgrid architectures, and other applications, Rangelov said.

The company’s products are used by network operators, electricity distribution companies, large industrial clients, data centres, and the defence sector. Renewable energy producers also utilize these products to stabilize and balance their power output. "EU directives provide a bonus in public tenders for energy storage systems produced within the EU, encouraging wider adoption of these systems across member states," Rangelov said.

Electricity prices, interruptions and security

Europe’s primary challenge stems from grid imbalances caused by the widespread deployment of renewable energy systems in recent years. These issues are being mitigated by battery storage solutions, which store excess energy and release it during periods of shortfall, thus preventing incidents like the major power outage experienced in Spain and Portugal.

Such solutions also enhance cybersecurity, an important concern for the EU due to the market dominance of Chinese imports.

For consumers, these battery systems provide a reliable electricity supply at home. They also contribute to more stable pricing when households participate in the open electricity market. Broad adoption of battery storage will help stabilize the energy mix, offering users consistent and predictable electricity prices.

Preliminary estimates indicate that Bulgaria requires 10 to 15 gigawatt-hours of energy storage capacity. This goal is achievable within three to four years if network operators and the Electricity System Operator leverage European grant programs. The investment payback period is up to three years, during which consumers will experience lower monthly bills as a result of market liberalization.

Benefits for Bulgaria

Registering the battery storage production project in the European Commission’s strategic project registry marks a significant validation, as many European companies identified as manufacturers mainly assemble systems from components sourced in China and do not have a complete production cycle “from cell to system,” Rangelov said. Inclusion in the Commission’s registry confirms that the Bulgarian company’s process is fully integrated. Only cells for grid-scale battery systems are imported from China, since Europe manufactures these cells exclusively for electric vehicles.

This underlines the significance of manufacturing in Bulgaria and Europe for the European Commission’s initiatives to build clean-tech supply chains and revitalize the industrial sector.

Rangelov noted the value of incorporating Bulgarian battery storage manufacturing as part of the EU’s efforts to reduce dependence on Chinese clean-tech imports due to geopolitical and cybersecurity concerns. Inclusion in this strategic list signals a clear commitment to reestablishing this industry within the European Union.

The move positions Bulgaria as a potential regional center for battery storage manufacturing. The company has developed microgrid energy storage technologies deployed across numerous countries in the Middle East and Africa over the past 36 years. Recently, these solutions have contributed to Europe’s green transition, enhancing Bulgaria’s standing as a technology producer and strengthening its market position, according to Rangelov.

Bulgaria could serve as a hub for Southeast European countries seeking to utilize its storage capacities by installing such batteries. However, this will depend on investments in transmission networks and supporting infrastructure.

Practical advantages of inclusion in the European Commission registry of strategic projects

Including Bulgaria’s project, together with five others from EU member states, in the European Commission’s strategic registry for implementing EU clean-tech industry directives offers several practical benefits. These include faster growth of manufacturing capacity in other EU countries, centralized EU funding with streamlined administrative processes, legal protections, and additional incentives for technology development, all aimed at increasing production.

"We currently have a 3 GWh annual capacity, we are designing a 10 GWh factory, so within two years our total annual capacity will rise to 13 GWh," Rangelov explained. However, he noted that within five years, the European Union's annual energy storage demand will reach at least 120 GWh. "Despite our efforts, we can reasonably anticipate achieving a maximum market share of 10%. The objective of this strategic classification is to accelerate capacity expansion, enable replication in other countries, and ensure that European-made technology meets the continent's demand," Rangelov said.