Bulgaria’s energy market
has important potential and is a recipient of foreign direct investments. The country’s energy strategy is based on sustainability, security, diversification and the development of renewable energy resources.
Bulgaria has a developed energy sector and its location in South Eastern Europe makes the country a strategically important one for the transportation and distribution of gas from Russia to Western Europe. Bulgaria has a significant role in providing and exporting energy in the Balkan region.
Investors who are interested in opening a company in the energy sector in Bulgaria
have access to a liberalized field that is subject to regulations and special licensing. In order to open this type of company in Bulgaria
entrepreneurs will need to observe the current market trends and the requirements for licensing and operation.
Energy sector structure in Bulgaria
Bulgaria’s energy sector is based on several sources for power generation:
- oil: the import and export of crude and refined petroleum is liberalized;
- natural gas: a system of extensive natural gas pipelines are in place in the country;
- coal: low-grade lignite is the most important resource for primary energy; coal-powered plants are responsible for some 55% of the energy produced in the country;
- electricity: the market is under the EU liberalization rules, much like the rest of the energy sector;
- nuclear: several units are fully operational;
- renewable energy.
Niche investments in the energy sector particularly focus on renewable energy but other possibilities are available for innovative companies.
Bulgaria’s particular geographical location makes it a special transit route, especially for transporting natural gas from Russia to Turkey and Greece. Important projects for gas transportation are planned to transit the country, including the South Stream pipeline and the Nabucco pipeline.
Foreign investors in Bulgaria
can explore these cross-border connections when deciding to open a company in the energy sector. A Bulgarian attorney can answer your questions regarding the market openness towards foreign investments and the applicable laws.
Licensing for the energy sector in Bulgaria
Licensing is mandatory in the energy sector in Bulgaria. While some sub-sectors are still undergoing a liberalization procedure, like the natural gas sector, foreign companies that enter the market are required to comply with the ongoing legislation, a mix between local laws and the EU directives.
An investor who wants to open a company in Bulgaria
can talk to one of our attorneys who can provide detailed information on specific licensing in this field.