CMS Expert Guide to Agrivoltaics and Floating Photovoltaics in Bulgaria

Yes, agrivoltaics are regulated in Bulgaria. With an amendment of the Bulgarian Agricultural Land Conservation Act (the “ ALCA ”) in December 2023, the legislative possibility of agrivoltaics was introduced. According to § 1, item 11 ALCA, the legal definition of agrivoltaics is energy facilities designed for generating electricity from solar energy that are constructed on agricultural land, while still allowing the land to be used for its intended agricultural purpose. According to current legislation, agrivoltaics can be constructed on agricultural land classified from the seventh to tenth categories without requiring a change in land use, which significantly facilitates the procedure and favours the development of agrivoltaics in Bulgaria. The construction of agrivoltaics is subject to the conditions and in accordance with the procedure established by an Ordinance of the Minister of Agriculture and Food and the Minister of Regional Development and Public Works. Such ordinance is yet to be issued, and its release is essential for the successful and sustainable growth of agrivoltaics in Bulgaria. 

There are currently no widely recognised large-scale operational agrivoltaics projects in Bulgaria. However, as the legislative framework is now starting to take shape, interest in agrivoltaics is growing.

Yes, there are regulatory hurdles for the implementation of agrivoltaics in Bulgaria. As mentioned above, one of the key challenges is the absence of an Ordinance of the Minister of Agriculture and Food and the Minister of Regional Development and Public Works that would outline the detailed conditions and procedures for developing agrivoltaic projects. The issuance of this ordinance is crucial, as it would significantly expand development opportunities. Additionally, Ordinance No. 6 of 28.03.2024 on the connection of objects to the electricity network will also undergo changes regarding the procedure for connecting electricity generation facilities to better accommodate agrivoltaics. 

Bulgaria has significant potential for agrivoltaics due to its extensive agricultural land and favourable solar conditions, which can optimise land use by generating renewable energy while supporting farming. Agrovoltaics allow for renewable energy production on fertile land and can also increase the production of crops due to the shading effect and the use of steel structures for watering. The European Commission highlights agrivoltaics as a key strategy for increasing renewable energy production while maintaining agricultural activities. The Joint Research Centre report reveals that agrivoltaics alone have the potential to exceed the EU’s 2030 photovoltaic targets, offering a significant opportunity for sustainable energy production. Agrivoltaics align with the goals of the European Green Deal by contributing to the EU’s target of achieving climate neutrality by 2050.

As of now, there are no specific financial support programmes in Bulgaria dedicated exclusively to agrivoltaics. However, investment in agrivoltaics may benefit from various European funds and programmes that support renewable energy and sustainable agriculture. The EU research and innovation programme Horizon Europe can provide grants for innovative agrivoltaic projects, especially those that advance technology and sustainability. The Common Agricultural Policy (“ CAP ”) is another EU programme that provides funding and support for sustainable agricultural practices within the EU. CAP can offer financial support for sustainable agricultural practices, which could include agrivoltaics as part of the broader environmental and efficiency goals.

FPV are not explicitly regulated in Bulgaria. It is debatable whether the construction and exploitation of FPV falls within the scope of the Waters Act, Spatial Development Act and/or the State’s Property Act and Municipality’s Property Act. Depending on what kind of territory (property) the FPV are to be constructed on, one of the abovementioned acts will apply. Nevertheless, in Bulgaria’s Energy Strategy, the state is committed to developing a modern legal framework regarding photovoltaic systems and by extension FPVs. 

No FPV projects have been implemented in Bulgaria. However, Profine Energy Bulgaria has devised a pilot project. The plan envisages the construction of an FPV on Montana’s Ogosta dam. The investment project amounts to approximately EUR 1 billion.

The lack of a legal framework and inconsistent regulation regarding photovoltaics is the main cause for businesses not to have implemented FPV projects in Bulgaria so far. It is debatable whether FPV will be regulated as constructions pursuant to the Spatial Development Act, or as a state’s or municipality’s property, as defined in the State’s Property Act and Municipality’s Property Act. Despite political instability in recent years, Bulgaria is committed to amending its legislation and implementing new rules on photovoltaic systems and FPV in its transition towards a sustainable and green economy. 

Bulgaria has an enormous potential for developing FPV, as in the country there are 26 major dams, with a total area of 355.69 km2, lots of rivers and the Black Sea. FPV can be built on either of Bulgaria’s largest dams, on the Danube River as well as near the Black Sea coast. Additionally, there are on the average 2,200/2,300 hours of sunshine per year, which makes Bulgaria perfect for FPV projects. 

Currently, Bulgaria has not implemented a standard procedure for financing FPV projects. Given that producing energy from an FPV installation is highly effective, e.g. installing FPV on 1% of the HPP reservoirs in Africa could boost electrical generation by 58% while lowering water evaporation as well as lowering CO2 emissions, it is very likely that the state will consider these advantages and will take the proper actions to create a modern and applicable legal framework that would secure Bulgaria’s energy system and put the country one step closer towards climate neutrality and a green economy.