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Draft law amending and supplementing the Energy and Water Supply Act – regulatory highlights and strategic implications

Draft law amending and supplementing the Energy and Water Supply Act – regulatory highlights and strategic implications

The Ministry of Energy has published for public consultation a draft law amending and supplementing the Renewable Energy Sources Act (RESA). It aims to complete the transposition of Directive (EU) 2023/2413, one of the key legislative acts within the European Green Deal and the Fit for 55 package.

The situation is particularly sensitive for Bulgaria, as on July 24, 2025, the European Commission launched infringement proceedings No. 2025/0198 against the country for late implementation of the directive. The adoption of the amendments is not only a matter of compliance with European requirements, but also a strategic move to maintain access to European mechanisms to support the green transition and avoid sanctions.

The draft law reflects the EU’s new, higher target for the share of renewable energy – a minimum of 42.5% in final consumption by 2030 – and provides for specific national and sectoral indicators for electricity, heating, cooling, transport, industry, and buildings. The update of the Integrated National Energy and Climate Plan is set as the main instrument for implementing these targets and monitoring progress.

An important focus is the introduction of mechanisms to facilitate long-term contracts for the purchase of electricity from renewable sources (PPA), as well as expanding the role of the Energy and Water Regulatory Commission in developing and monitoring such market solutions. The topic of biomass also occupies a significant place – new sustainability criteria are being introduced, requiring the minimization of adverse effects on biodiversity and climate, as well as bans on supporting practices such as the burning of logs or unsorted waste.

A significant innovation is the creation of zones for accelerated implementation of RES, in which administrative deadlines are shortened and public participation in planning becomes a mandatory element. In the field of transport and fuels, a scheme of obligations for fuel suppliers is planned, which will also include the possibility of compensation through credits for electricity from renewable sources. The new rules set requirements for the use of new-generation biofuels, renewable fuels of non-biological origin, and recycled carbon fuels, and provide for a flexible mechanism for temporary exemption from obligations in the event of market shortages.

An important part of the bill concerns guarantees of origin. The Agency for Sustainable Energy Development (ASED) is given new powers to develop a methodology for calculating the residual energy mix and to publish the results annually, while at the same time integrating into a pan-European database on renewable fuels.

The bill also imposes new requirements on network operators and the Energy and Water Regulatory Commission (EWRC). Electricity transmission and distribution operators will have to provide real-time data on the share of renewable sources and the emission factor of electricity. There is also an obligation to create conditions for the participation of small decentralized assets—such as household batteries, rooftop photovoltaics, and electric vehicles—in the electricity markets. The term “household battery” is introduced for the first time in the regulatory framework, and the definition of “charging point” is updated.

From the point of view of stakeholders, the upcoming changes will have a multifaceted effect, according to experts at the ministry. For investors, new opportunities are opening up for concluding long-term green energy contracts and participating in European joint projects. For business and industry, the bill provides a framework for the implementation of RES and alternative fuels with the aim of reducing the carbon footprint. For citizens and local communities, the reform brings new opportunities to participate in the energy transition through energy communities, rooftop installations, and decentralized storage systems. However, network operators and institutions face serious challenges related to network modernization, digitization, and real-time flexibility management.

The full text of the bill and its explanatory memorandum are available on the Public Consultation Portal: Public consultation on the draft amendment to the RES Act. The deadline for submitting comments is October 17, 2025, and active contributions are expected from energy companies, investors, non-governmental organizations, academia, and civil society.

The proposed amendment to the ZEVI will be a test of the country’s administrative and institutional capacity to combine regulatory stability with market flexibility and social acceptance of the transformation. In this sense, public consultation is a crucial stage that will show the extent to which the various stakeholders are prepared to actively participate in the implementation of the reforms and the extent to which their positions will be heard and reflected in the final text of the law.

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