Bulgaria approves 228 million euro guarantee for Yadenitsa reservoir project

The Bulgarian Council of Ministers has approved state guarantees of up to 228,086,452 euros for the National Electric Company (NEK) to complete the Yadenitsa reservoir project and its connection to the Chaira Pumped Storage Plant (PSP). The guarantees are intended to be included in the 2027 state budget draft.

The project aims to increase the capacity of the Chaira PSP, the largest facility of its kind in the Balkans, by constructing the Yadenitsa reservoir and a reverse pressure tunnel. This expansion is expected to increase the plant's full-power operating time from approximately eight and a half hours to around 20 hours. This flexibility is critical for integrating renewable energy sources into the grid.

The project is recognized by the European Union as a project of common interest. Before the guarantee is officially proposed, the Energy Minister must confirm that NEK is not an undertaking in difficulty and is capable of servicing the loans. The decision also specifies that no other new investment projects will be approved for state loan financing in 2027, making Chaira the sole exception.