Bulgaria’s energy regulator, KEVR, is advancing its electricity market reform agenda by initiating a public discussion focused on proposed amendments to the country’s electricity trading framework. This initiative seeks to engage a diverse array of stakeholders, including representatives from the three main electricity distribution companies, Sofia Municipality, and the Bulgarian Association of Electrical Engineering and Electronics, highlighting the broad impact anticipated from these changes across the energy sector.
The proposed amendments are designed to align secondary legislation with recent updates to the Energy Act and fulfill Bulgaria’s commitments under its National Recovery and Resilience Plan. A significant aspect of this reform is the introduction of a new methodology for calculating electricity that is generated, consumed internally, and sold, which aims to streamline operations within the market.
KEVR officials have indicated that the revised framework intends to facilitate market access for citizen-led initiatives and renewable energy communities. By promoting local production closer to consumption points, the regulator anticipates benefits such as reduced network losses, more predictable energy costs for consumers, and lower network-related charges over time.
The draft regulations also encompass provisions for the entry of new market participants, establishing protocols for trading groups, detailing contractual arrangements, and outlining registration processes along with data exchange protocols between network operators, suppliers, and members of energy communities.
Distribution companies have expressed practical concerns regarding the implementation of these changes. They have called for a clearly defined administrative authority to oversee registrations and adequate time for adapting to the new calculation methodology. KEVR chair Plamen Mladenovski noted that ideally, registration responsibilities should be managed by the Sustainable Energy Development Agency; however, this requires legislative amendments. In light of tight deadlines associated with the Recovery and Resilience Plan and an ongoing EU infringement procedure concerning delayed directive transposition, distribution companies have temporarily assumed these responsibilities.
The final version of the amended trading rules is expected to be adopted by KEVR on January 29, after which it will proceed to official publication. This policy direction has garnered support at the government level as well. Energy Minister Zhecho Stankov announced plans for 2025 to establish Bulgaria’s largest energy community in collaboration with the transmission system operator ESO and the Bulgarian Development Bank. This initiative aims to alleviate financing constraints and enhance energy balancing within the national grid.
