Bulgaria’s Coal Sector in Transition
Bulgaria remains heavily dependent on coal: about 40% of its electricity is generated from coal-fired plants. Crucially, the Maritsa East complex (in Stara Zagora province) is the heart of this sector, it supplies roughly 30% of national power. Maritsa East comprises three open-pit lignite mines and four thermal power stations. Around 12,000 people work directly at these mines and plants, and thousands more in related industries. The complex’s dominance makes coal mining the single largest industrial activity in Stara Zagora: coal (lignite) mining and power account for a large share of the province’s GDP. Outside the coal sector, incomes in the region are low (industrial wages can be only ~€300/month), underscoring how coal jobs have underpinned the local economy. Nationally, roughly 15,000 jobs depend directly on coal (mining and power) and perhaps 50,000 indirectly.
Stara Zagora is the most coal-dependent region: four mines and plants lie within its borders, making it the country’s top coal district. As a result, energy makes up an outsized portion of local GDP and employment. Any cutbacks in coal will thus have major socioeconomic impacts. For example, the Pernik thermal plant has already reduced staffing (from ~1,200 to 450 workers after shutting two boilers). Bulgarian law now requires coal generation to end by 2038 (part of the Recovery & Resilience Plan and a January 2023 parliamentary decision). National analyses foresee that the transition will require creating roughly 27,000 new jobs outside coal, about 12,000 by 2030 and another 15,000 by 2038 to absorb laid-off coal workers. This will necessitate massive workforce retraining and investment in new industries.
Opportunities: Renewables and New Industries
The government and EU are planning to repurpose coal assets into new green industries. Key strategies include building renewable energy projects on former mining land, developing green hydrogen infrastructure, and fostering industrial diversification. For instance, the Maritsa-East Transformation Plan (under development with EIB support) envisions converting unused land (even an old airport) into sites for solar parks, wind farms, energy storage and other modern uses. A funded pilot called ZAHYR aims to establish a hydrogen “valley” in Stara Zagora: a new solar PV farm will power electrolyzers to make green hydrogen, used for transport and power, directly cutting CO₂ from the lignite. In parallel, experts have identified several promising technologies – green hydrogen, renewable ammonia, energy storage and efficiency – that could replace Maritsa East’s coal output.
Broadly, Bulgaria’s energy roadmaps target a massive scaling-up of renewables. One national scenario adds ~3.5 GW of new wind/solar by 2030 (bringing renewables to ~7.5 GW total, including offshore wind and storage), and over 10 GW by 2035. By 2035 Bulgaria would keep only ~1 GW of coal-fired backup capacity and otherwise rely on low-carbon sources. In effect, coal would play no significant role after 2035. This shift would cut power-sector CO₂ by roughly 90% by 2035. Achieving these targets opens opportunities such as:
- Solar and Wind Farms: Large PV parks and onshore wind farms can be built on rehabilitated mine sites or nearby open land. For example, JTF plans explicitly include “photovoltaic parks” and even virtual power plant pilots on former coal sites.
- Green Hydrogen and Batteries: Stara Zagora’s proximity to infrastructure makes it ideal for hydrogen projects. Beyond ZAHYR, plans call for blending hydrogen into pipelines (via the H2-BGRS interconnector) and installing battery storage to back up renewables. The national Hydrogen Roadmap targets 55 MW electrolyzers and ~7,800 tonnes of green H₂ by 2025.
- Industrial Parks for Clean Tech: Degraded land (over 2,000 hectares in coal zones) will be prepped for new factories. The JTF and EIB advisers propose climate-neutral industrial parks for clean tech manufacturing or R&D. Possible ventures include manufacturing solar PV components, EV battery parts, or high-tech equipment (e.g. in mechatronics) in ex-coal facilities. The government even plans a “Conversion of Coal Regions” entity to channel investment into such projects.
- Agriculture, Forestry and Tourism: Although less emphasized, regions will also diversify into renewable-driven agriculture or eco-tourism. For instance, rehabilitated mine land can support biomass or greenhouses. (Separate EU studies identify sustainable farming and mechatronics as priority diversification tracks in Stara Zagora)
- Energy Efficiency and Prosumers: Upgrading homes and businesses for efficiency, and supporting citizen energy communities (e.g. rooftop solar co-ops) are also planned. JTF measures will finance renovations for energy-poor households and promote decentralised renewables.
Overall, the aim is to leverage existing strengths. The EIB advisory report highlights Stara Zagora’s advantages: a skilled workforce, solid power-grid connections, industrial land and transport links. The new plan seeks industries that can use these assets. Deputy Energy Minister Nenov stressed that the transition should “make use of existing assets and give them new life, preserve jobs and create new quality ones,” with investment mapped to match workers’ skillsets. Retaining the local labour pool is key: coal miners’ skills will be retooled for clean-energy roles, assembling PV arrays, installing electrolyzers, drilling geothermal wells, etc. The government has even identified specific new trades (solar panel manufacture, hydrogen equipment, energy storage components) for upskilling miners.
Investment Pathways and EU Funding
A range of EU and national funds will support this transition. The centerpiece is the Just Transition Fund (JTF): Bulgaria secured €1.2 billion to aid its coal regions. This will fund economic diversification, retraining and clean-energy projects in Stara Zagora, Kyustendil and Pernik. According to the European Commission, the JTF program will “deliver new jobs and economic activities” for over 15,000 workers, including their reskilling in coordination with the European Social Fund. Roughly 2,190 hectares of degraded land will be rehabilitated for new industry and renewables (solar parks, storage, etc.). The JTF also explicitly targets projects like photovoltaic parks, pilot virtual-power plants, clean-tech industrial zones and hydrogen value chains. Small and medium businesses will be supported to install renewables and pursue circular-economy innovations.
Beyond JTF, several EU mechanisms are in play. Sofia Alves (DG Regio) notes that unprecedented EU funding is available – from the Recovery and Resilience Facility, InvestEU, public-sector loan facilities and dedicated JTF schemes, but warns it is time-bound. InvestEU’s Advisory Hub and the EIB are already assisting Bulgaria: they helped draft investment roadmaps and SWOT analyses for Maritsa East. The EU’s Public Sector Loan Facility will couple grants with EIB loans to finance public infrastructure in coal regions (e.g. energy networks, utility upgrades). A regional “Just Transition Platform” is also fostering knowledge-sharing with other coal regions.
Nationally, Bulgaria has earmarked recovery funds for green transition: about 58.9% of its RRP investments go to climate action. The plan calls for tripling renewable capacity by 2026, backed by €1.7 billion in renewables, storage and grid upgrades. Over €1 billion more is set for building retrofits and efficiency. The government strategy (2025–2029) likewise prioritizes decarbonization: it proposes a new Decarbonisation Fund and legislative reforms to spur energy efficiency and renewables, while securing supply. Interestingly, the plan also mentions extending natural gas infrastructure into Maritsa East, to attract transitional investments like gas power plants or industry.
Finally, EU Cohesion Policy (2021–2027) and national programs will top up these resources. Bulgaria has set up local governance committees so that communities steer spending. In Stara Zagora, for example, a recent seminar emphasized the need for a shared vision and stakeholder dialogue to align all funding sources. The message is clear: if Bulgaria can quickly channel EU grants (JTF, RRF etc.) and combine them with private and international investment, it can turn its coal legacy into a springboard for clean growth.
Conclusion
The coal transition in Bulgaria is daunting but also opportunity-rich. In coal towns like Stara Zagora, a significant portion of local GDP and livelihoods depends on lignite. Strategic planning is underway to replace coal jobs with new industries: large-scale renewables (solar, wind, hydrogen) and climate-smart manufacturing. The region’s trained workforce and infrastructure provide a strong foundation. With €1.2 billion from the EU’s Just Transition Fund and additional Green Deal-related financing, the focus is on retraining, land rehabilitation and startup support to ensure no community is left behind. Pilot projects – from the ZAHYR hydrogen valley to planned industrial parks are already showing how mines can give way to solar farms, battery plants and tech hubs. If these efforts succeed, Bulgaria’s coal hinterlands could become engines of clean energy and innovation, aligning national policy with EU climate goals and securing a sustainable economic future for local people.
Sources: European and Bulgarian government reports, EU Commission announcements, and research studies on Bulgaria’s energy transition
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