Bulgaria adopts new Energy Programme for 2026-2030: key points

On 12 August 2026, the Bulgarian government adopted a new Energy Programme for the next four years with the strategic objective of providing affordable energy for households while maintaining competitive conditions for Bulgarian businesses and grounding all major decisions on expert assessments, realistic economic calculations and long-term national interest.

The Bulgarian energy model is based on a balanced combination of nuclear, coal, natural gas, hydro and renewable capacities, supported by energy storage systems and modern transmission networks. A predictable and consistent regulatory framework will be established, founded on technological neutrality, equality and transparency for all market participants.

Key points 

The main features of the four-year plan include the following: 

• Implementation of the Strategy for Sustainable Energy Development to 2050 with clear roadmaps to 2035 and 2050 that will be updated every five years.
• Preservation of coal capacities as strategic reserve for peak and crisis conditions.
• Establishment of nuclear energy as strategic pillar with long-term operation of Kozloduy Units 5 & 6, construction of Units 7 & 8 with AP1000 technology, and exploration of small modular reactors.
• Enhanced utilisation of hydro potential through modernisation of existing plants and the construction of new pumped-storage facilities.
• Expansion of Chiren underground gas storage to 1 bcm capacity.
• Development of Bulgaria as a regional energy hub in southeast Europe.
• Responsible, phased liberalisation of household electricity market with consumer protection mechanisms.
• Implementation of National Programme for Young Specialists in Energy to address workforce needs. 

Priority 1: energy security and system adequacy 

This first priority of the programme is to establish long-term energy planning through the development of a Strategy for Sustainable Energy Development with a horizon to 2050. The strategy will include scenario planning for consumption, energy mix and system adequacy under normal, peak and crisis conditions with assessments every five years.

Key legislative measure 

To achieve this priority, Bulgarian lawmakers will pass an amendment to the Underground Resources Act to increase transparency in concession activities, strengthen control over concession contracts and ensure clear procedures for investors. The deadline for adopting this legislation is December 2026.

The key executive measures for achieving this priority include:

• Preparation of the Strategy for Sustainable Energy Development (April 2027) with  an Environmental Assessment (September 2028) and adoption by the Council of Ministers (October 2028).
• Digitisation of the National Geological Fund with over 15,000 geological reports digitised by December 2029.
• Launch of a research programme for strategic and critical raw materials including rare earth metals.
• Sectoral assessment of physical and cyber risks for strategic energy facilities (December 2027).
• Transformation of reclaimed mining areas into zones for new sustainable economic activities (December 2028).

Priority 2: energy efficiency, decentralisation and diversification 

This priority achieves lower energy intensity, greater independence from individual sources and suppliers, and higher competitiveness for the Bulgarian economy. The goal is to enable households, municipalities and enterprises to produce, store and share energy and participate actively in the energy market through energy communities and decentralised production.

Key legislative measures

To achieve this priority, Bulgarian lawmakers will adopt the following legislation:

• Amendments to the Energy Efficiency Act  to improve building stock renovation and achieve energy savings targets (October 2026).
• Amendments to the Energy Act to enable decentralised energy production, energy communities, hydrogen regulation and hydropower development (September 2026).

The key executive measures for achieving this include:

• Implementing the Integrated Energy and Climate Plan for 2030-2040 with long-term forecast scenarios (September 2028), conducting an Environmental Assessment (June 2029) and adoption by the Council of Ministers (November 2029).
• Creation of green energy corridors: identification of priority projects (September 2026) and feasibility studies (May 2030).
• Restoration of Chaira Hydroelectric Power Plant capacity (June 2028).
• Assessment of existing HPPs and CHPPs for modernisation and the development of new pumped storage projects (2030).

Priority 3: nuclear energy as a strategic pillar

Nuclear power continues to be the strategic pillar of Bulgaria’s energy independence. This priority encompasses the reliable long-term operation of existing nuclear capacities, construction of new units, diversification of nuclear fuel supplies and the participation of Bulgarian industry in nuclear projects.

The key executive measures for achieving this include:

• Safe decommissioning of the Kozloduy NPP Units 1-4, including projects financed through the Kozloduy International Fund (through staged implementation by December 2030).
• Continuation of the Kozloduy NPP Units 7 & 8 construction project in preparation for the Final Investment Decision (October 2026).
• Conducting the national assessment of opportunities for new nuclear projects, including small modular reactors (September 2027).
• Creating a roadmap for small modular reactor development with regulatory and administrative prerequisites (January 2028).
• Implementing the Updated Strategy for Management of Spent Nuclear Fuel and Radioactive Waste (February 2027).
• Implementing the mechanism for Bulgarian enterprise participation in nuclear capacity design, supply, construction and maintenance (December 2027).

Priority 4: establishing Bulgaria as a regional energy hub

This priority focuses on modernising, expanding and digitising electricity and gas transmission infrastructure to establish Bulgaria as a regional energy centre in southeast Europe. Smart grids, automated management and digital substations will create more efficient management of energy flows and higher quality services.

Key legislative measure 

Amendments to the Energy Act designed to optimise procedures for connecting production, consumption and storage facilities to networks (September 2026).

Key infrastructure projects

• Increased gas transmission capacity from Greece to Bulgaria at the Kulata/Sidirokastro – 93 GWh/d (October 2026).
• Increased gas transmission capacity from Bulgaria to Romania at the Negru Voda/Kardam – 295 GWh/d (April 2027).
• Expansion of the Chiren underground gas storage to 1 billion cubic metres capacity (December 2029).
• Construction of four new 400/110 kV substations (December 2029).
• Construction of eight new 400 kV outdoor switchgear installations (December 2029).
• Construction of 700 km of new 400 kV overhead transmission lines (December 2029).
• Phased digitisation of electricity distribution networks with smart metering systems (September 2028).

Priority 5: rehabilitation of state-owned energy companies

This priority addresses the financial rehabilitation, technological modernisation and improved governance of state-owned energy companies. Management will be based on clear objectives, measurable performance indicators, financial discipline and accountability with higher requirements for professional qualifications within the management bodies.

The key executive measures for achieving this priority include:

• Independent financial and management audits of state-owned energy companies (October 2026).
• Creation of a unified system of performance indicators for financial discipline, operational efficiency and management quality (August 2026, with annual assessment).
• Increased requirements for professional qualification and sector experience for members of management and control bodies (January 2027).
• Standardised public reporting on financial condition, investment programmes and procurement (from January 2027).
• Analysis of Electricity System Security Fund for its development as a stabilisation and strategic investment instrument (January 2027).
• Analysis of the possibility of launching a public offering of minority shares on the Bulgarian Stock Exchange while maintaining state control (January 2027).

Priorty 6: affordable prices and responsible market liberalisation

This priority ensures affordable and predictable electricity prices for households through responsible, phased and socially sustainable market liberalisation. Decisions will be based on thorough socio-economic analysis, including impact assessment on household bills, incomes, inflation and energy poverty. The pace of liberalisation will be adapted to market readiness and availability of real competition.

The key executive measures for achieving this priority include:

• Conducting a thorough socio-economic analysis before implementing further liberalisation steps (April 2027).
• Creating a phased liberalisation model based on objective market readiness criteria (September 2027).
• Creating an information system for identification of energy-poor households and vulnerable customers (December 2026).
• Conducting a study of block pricing models where basic consumption is charged at favourable rates (April 2027).
• Creating mechanisms to limit sharp price fluctuations for household consumers (September 2027).
• Improved consumer protection rules including transparent pricing, facilitated supplier switching and guaranteed supply (September 2027).
• Periodic assessment of market changes on prices, household costs and competition (from January 2028, every six months).

Priority 7: energy sector expertise – strategic resource

This priority ensures the necessary specialists for the sustainable functioning and development of the Bulgarian energy sector. Bulgarian engineers, technicians, scientists and experts will be placed at the centre of energy policy with investments in preparing a new generation of specialists through dual and practical training.

The key executive measures for achieving this priority include:

• Reforming the remuneration system for management and control bodies of state energy companies (August 2026).
• Creating a map of critical professions with three-year forecast for specialist needs (December 2026, with annual updates).
• Implementing a National Programme for Young Specialists in Energy including scholarships, internships and dual training (from the 2027/2028 academic year).
• Creating requirements for Bulgarian specialist participation in major new energy projects (from January 2027).
• Implementing programmes for continuing training in nuclear energy, network infrastructure, digitalisation and new technologies (December 2027).
• Creating mechanisms for mentoring and knowledge transfers for key technical and management positions (June 2027).
• Establishing an interdepartmental format for energy diplomacy coordination with the Ministry of Foreign Affairs (December 2026).

Key implementation timeline

The schedule for implementing Bulgaria’s energy programme is as follows:

• Energy Act and Energy Efficiency Act amendments (September-October 2026).
• Final Investment Decision preparation for Kozloduy Units 7 & 8 (October 2026).
• Greece-Bulgaria gas interconnector capacity increase (October 2026).
• Financial audit of state-owned energy companies (October 2026).
• Subsoil Resources Act amendments (December 2026).
• Energy poverty information system (December 2026).
• Strategy for Sustainable Energy Development preparation (April 2027).
• Bulgaria-Romania gas interconnector capacity increase (April 2027).
• SMR development assessment (September 2027).
• Phased liberalisation model defined (September 2027).
• National Programme for Young Specialists launch (2027/2028 academic year).

2028 - 2030

• Chaira HPP capacity restoration (June 2028)
• Strategy for Sustainable Energy Development adoption (October 2028)
• Chiren gas storage expansion to 1 billion m³ (December 2029)
• 700 km new 400 kV transmission lines, four new substations, eight new switchgear installations (December 2029).
• Integrated Energy and Climate Plan 2030-2040 adoption (November 2029).
• Kozloduy Units 1-4 decommissioning completion (December 2030).
• HPP/CHPP modernisation assessment and new pumped storage projects (2030).

Guiding principles

The programme is underpinned by the following core principles:

• Energy security: Ensuring reliable energy supply under normal, peak and crisis conditions through diversified sources and robust infrastructure.
• Technological neutrality: Equal treatment of all energy technologies without favouritism towards particular solutions or companies.
• Consumer protection: Safeguarding households and businesses from excessive costs while ensuring fair market conditions.
• Expert-based decision making: Strategic decisions grounded in expert assessments, realistic economic calculations and transparent criteria.
• Fair transition: Appropriate transition for coal regions without administrative closure of operating capacities or abandonment of communities.
• Strategic asset protection: Preventing the intentional weakening of state-owned companies or the selling off of strategic assets.
• Public-private partnerships: Structuring effective partnerships that are economically justified and protect state interests.
• National capacity building: Developing Bulgaria’s engineering, technological and managerial capacity for major energy projects.

For more information on Bulgaria’s energy sector and its priorities for the future, contact your CMS client parter or the CMS experts who contributed to this article: Kostadin Sirleshtov, Managing Partner, Borislava Piperkova, Partner, or your usual CMS contact.