The European Investment Bank (EIB) will assist Bulgaria’s national electricity company, Natsionalna Elektricheska Kompania EAD (NEK), in developing two large pumped storage hydropower plants in the country’s southwest. These projects, Batak and Dospat, aim to enhance both domestic and European Union energy supplies.
Each plant will add around 800MW of generation capacity and expand storage capabilities, strengthening the electricity supply in Bulgaria and the EU. EIB Advisory – as a main partner of the InvestEU Advisory Hub of the European Commission – will examine the technical feasibility and economic viability of the two projects as well as assess their benefits and risks. This will allow NEK to make informed decisions crucial for the development of the two projects.
“The EIB supports the development of strategic sustainable investment projects in the energy sector across the European Union and beyond,” said EIB Vice-President Kyriacos Kakouris. “We are pleased to provide the Bank’s expertise in assessing the feasibility and the viability of the two projects, which can significantly impact Bulgaria’s energy mix and enhance the stability of its power grid while reinforcing the overall European energy grid infrastructure.”
“The partnership between the European Investment Bank and the Ministry of Energy is key to delivering projects that will contribute to achieving the energy transition. Among them is the development of pumped-storage hydropower plants, which could become the largest energy storage batteries in the region,” said interim Energy Minister, Vladimir Malinov. “The implementation of such projects will enhance our energy security, improve Bulgaria’s energy infrastructure and achieve our decarbonization goals. We are grateful for the EIB’s expertise and support for this very important project.”
NEK CEO Martin Georgiev highlighted the significance of this agreement, stating: “The agreement signed today between NEK and the European Investment Bank marks an important step not only for the development of the Batak and Dospat PSHPP projects but also for ensuring the security of supply within Bulgaria’s electricity system and for achieving the country’s decarbonisation goals. It further represents an important tool, which unlocks the value that hydropower brings for the Energy Transition. The benefits and social significance of investing in such sustainable infrastructure are undeniable and we esteem it a privilege to have the expertise and support of the EIB and the European institutions involved in the process.”
The advisory support for NEK underlines the EIB’s dedication to sustainable energy transformation across the EU.
Located near the towns of Batak and Dospat, tese projects, with an estimated cost of about €900 million each, are expected to be operational by 2032 and are included in the Ten-Year Network Development Plan (TYNDP) 2024 of the European Network of Transmission System Operators for Electricity (ENTSO-E).
