At the end of 2023, the European Commission approved Bulgaria’s Territorial Just Transition Plans, unlocking EUR 1.2 billion in funding to support the social, economic and environmental transformation of the country’s three coal regions – Stara Zagora, Pernik and Kyustendil.
Despite significant delays in submitting these plans – delays that nearly jeopardised Bulgaria’s access to the Just Transition Fund – the green light from the Commission is positive news for regions in the country most affected by the energy transition.
The newly allocated funds and targeted measures provide a unique opportunity for the development of truly transformative projects that can help these regions break free from their reliance on fossil fuels.
Embracing energy communities
In July 2024, environmental organisation Za Zemiata (Friends of the Earth Bulgaria) held the third meeting in a series of thematic workshops entitled ‘On the road to a just energy transition in Bulgaria’. The series aims to increase the capacity of local authorities in the country’s coal regions and promote the exchange of best practices.
The first two workshops were held in May 2024 in Pernik and Bobov Dol, the hardest-hit municipality in the Kyustendil region. Exploring the topic of how energy communities can support the local energy transition, the sessions generated a lot of interest among representatives of the three municipalities in attendance – Pernik, Bobov Dol and Kyustendil. As a result, representatives of Kyustendil municipality offered to host a more in-depth and practical workshop on establishing energy communities.
The concept of energy communities is already well established, with numerous initiatives around the world serving as successful examples. Now the movement is expected to take off in Bulgaria following recent amendments to the Energy Act and Renewable Energy Act, which formally introduced the definition of an energy community for the first time. However, the current legal framework is lacking and needs to embrace a wider range of stakeholders, especially local authorities, communities and vulnerable groups. There’s also a huge need to facilitate access to existing funding sources for transforming the energy sector.
Stakeholders come together
The July meeting was kicked off by Kyustendil’s deputy mayor and host of the event, Rositsa Plachkova. Around 30 representatives from various departments within the municipality attended the event. This diverse group shows that the transition of the coal regions involves more than just energy transformation. It also presents opportunities for regional development and to adopt social, economic and environmental measures aimed at supporting the most vulnerable and affected members of the community. And this is precisely why energy communities are so important – they strive to empower local communities.
According to REScoop.eu, the European federation of energy communities, ‘energy communities are a collaborative model that constitutes the perfect vessel for directly involving citizens and local communities in renewable energy facilities’. As well as allowing people to participate in the production of clean energy, these communities ensure that the energy generated is used locally.
Another important advantage of energy communities is the social aspect. That’s why the involvement of local authorities is so crucial in facilitating the participation of vulnerable groups in these types of projects, which can, in turn, help prevent energy poverty.
From theory to practice
Vladimir Zinoviev, associate professor at the University of National and World Economy (a public research university in Sofia), provided a theoretical overview of energy communities. He highlighted the importance of democratising the current conservative energy system, emphasising the four Ds – decarbonisation, decentralisation, democratisation and digitalisation – which will make up the key characteristics of the transformed energy system.
In addition to highlighting existing cooperation models, including the various ways energy communities can be run, Zinoviev also discussed funding opportunities and showcased best practices from Europe, the US and India.
One inspiring example is ‘Repowering London’, a community energy development organisation based in the UK. Working closely with community members and local authorities, the organisation helps them establish their own renewable energy projects such as solar rooftop panels, which not only produce clean energy, but also decrease electricity costs for households and fund other local initiatives.
Learning from success
Todor Popov, a representative of Gabrovo municipality and the driving force behind Bulgaria’s first energy community, gave an overview of the nuts and bolts of setting up an energy community. He showcased the business model used by Gabrovo energy community, outlining the options for registering an energy community as a legal entity and the steps that need to be implemented successfully establish an energy community.
Presentation (translated from Bulgarian) on Gabrovo energy community (source: Todor Popov).
Other representatives of Gabrovo municipality offered further advice. One is that municipalities should propose ready-made projects first instead of seeking funding before projects are drafted. This approach can help overcome any distrust among participants in the success of the energy community, which might be the main obstacle if funding is first sought without a well-developed project proposal.
They also suggested focusing the messaging on the potential savings for the local community, utilising existing technologies such as solar panels, and making use of suitable land where available. Perhaps most importantly, they stressed the importance of taking action and not getting too stuck on finding the ‘perfect’ model.
Taking just such an approach, the municipality of Burgas, following the example of Gabrovo, is now actively pursuing the establishment of their own energy community, with Gabrovo energy community serving as their main consultant.
Representing the NGO sector, Kristian Dimitrov, leader of Greenpeace Bulgaria’s energy community campaign, shared his organisation’s expertise in supporting local authorities in their efforts to implement energy communities. Dimitrov also emphasised the key role the NGO sector has to play in raising awareness and helping institutions and communities transform the energy system.
For instance, the ‘Energy Espresso’ course, jointly developed by Greenpeace Bulgaria and Energy Cities, a network of local authorities in Europe focused on the energy transition, is a valuable tool that will be offered to local authorities to expand their knowledge and understanding of energy communities.
Funding and community engagement
Finally, Za Zemiata highlighted both the many opportunities available for funding the energy transition and the need to involve local communities and regional institutions in the just transition. In particular, they emphasised the eligible measures available under the Just Transition Fund. For instance, measure 10 of the Territorial Just Transition Plan for Kyustendil – ‘Supporting prosumers and energy communities’ – specifically targets these kinds of initiatives. The plans for the regions of Pernik and Stara Zagora include similar measures.
Actively promoting investments in energy communities in Bulgaria and encouraging partnerships between local institutions and authorities are key to addressing the social, economic and environmental issues facing vulnerable regions in transition.