Energy Cooperatives, Regulatory Hurdles and Possible Financial Models – EU – Bulgarian Context
Energy Cooperatives, Regulatory Hurdles and Possible Financial Models – EU – Bulgarian Context

Author(s): Nadya Parpulova
Subject(s): Politics / Political Sciences, Politics, Economy, Business Economy / Management, Energy and Environmental Studies, Environmental and Energy policy, EU-Approach / EU-Accession / EU-Development
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: energy cooperatives; legal framework; renewable energy; energy decentralization;
Summary/Abstract: The European energy market is undergoing a fundamental change, witnessing the emergence of innovative technologies and novel business models, which require the organizational and institutional transformation of the current energy system. Energy Communities (ECs) are exemplary for this transformation and are legally defined by the European Commission as entities that can take part in any stage of the energy supply chain ranging from energy generation, oversupply, to the provision of other energy services (e.g. aggregation, storage, electric mobility) while fulfilling a social and environmental purpose. Energy Communities (ECs) play a crucial role in the energy transformation by promoting decentralized, sustainable, and community-driven energy initiatives. Bulgaria, like many other countries, lacks a specific legal framework tailored to energy cooperatives, making it difficult for them to operate within existing regulations. Complex licensing procedures are in place. Obtaining licenses for energy production and distribution can be complicated and time-consuming, often requiring navigation through multiple bureaucratic layers. High connection costs are also a hurdle. Regulations usually favor large energy producers, making it difficult for smaller cooperatives to compete equally. Energy Communities are pivotal in driving the energy transformation by fostering local, sustainable, and community-focused energy solutions. The European Commission's legal framework supports their integration into the energy market, enabling them to participate across the energy supply chain and contribute significantly to the EU's energy and climate goals.

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