20.12.2022

PARAMETERS FOR THE CONSTRUCTION OF RES FOR OWN CONSUMPTION UNDER THE NATIONAL PLAN FOR RECOVERY AND SUSTAINABILITY

Comments and proposals on the parameters can be submitted until 12.01.2023

The Ministry of Innovation and Growth presented for public discussion the documents and application guidelines under procedure BG-RRP-3.006 - "Construction of new RES for own consumption in combination with local energy storage facilities in enterprises".

According to the published information, proposals and comments can be submitted until 12.01.2023 in the information system for management and monitoring of EU funds in Bulgaria HERE.

The total amount of the grant is BGN 200 million, and the funds are distributed proportionally depending on the size of the enterprises and the sectors in which they operate:

• Industry (covers the economic sectors according to the Classification of Economic Activities - KID-2008 B, C, E and F or these are mining and processing industry, water supply and waste management, construction);
• Services (covers economic sectors according to the Classification of Economic Activities - KID-2008 G, H, I, J, L, M, N, P, Q, R and S or these are trade and repair, transport and warehousing, hotel and catering, creation and dissemination of information, telecommunications, real estate operations, scientific research, professional, administrative and auxiliary activities, education, health care, culture, sports and entertainment, etc. activities).

The minimum and maximum amount of grant funding for a specific proposal for the implementation of an investment is from BGN 100 thousand to BGN 1 million, and the maximum amount of requested grant funding for an investment should not exceed the applicant's average annual net sales revenue for the three-year period 2019, 2020 and 2021, respectively:

• 100% for micro-enterprises;
• 60% for small enterprises;
• 25% for medium-sized enterprises, small mid-caps and mid-caps.

The duration of implementation of any investment proposal should not exceed 18 (eighteen) months, counted from the date of entry into force of the financing contract with the final recipient.

Additional restrictive conditions are provided in relation to the intensity of the grant funding and depending on the geographical location of the implementation of the investment:

• 50% for micro-enterprises;
• 50% for small businesses, BUT 45% for applicants from the South West planning region;
• 45% for medium-sized enterprises, small mid-caps and mid-caps, BUT 35% for applicants from the South West planning region.

Who can apply?

• have realized net revenue from sales for the financial year 2021 depending on the category of the enterprise that will apply:
• companies with an average market capitalization (these are enterprises that are SMEs according to financial indicators - have an annual turnover that does not exceed BGN 97,500,000 and/or an asset value that does not exceed BGN 84,000,000, according to Article 3 of the Law on Small and Medium Enterprises, but the average number of their staff is up to 1,500 employees, i.e. they have an average number of staff from 500 people to 1,500 people);
• small companies with an average market capitalization (these are enterprises that are SMEs in terms of financial indicators - they have an annual turnover that does not exceed BGN 97,500,000 and/or an asset value that does not exceed BGN 84,000,000, according to Article 3 of the Law on Small and Medium Enterprises, but the average number of their staff is up to 499 employees, i.e. they have an average number of staff from 250 people to 499 people);
• micro-, small and medium-sized enterprises within the meaning of Art. 3 and Art. 4 of the Law on Small and Medium Enterprises;
• registered no later than 31.12.2019;
• merchants within the meaning of the Trade Act or the Cooperatives Act;

o Micro-enterprises: ≥ 80,000 BGN

o Small enterprises: ≥ BGN 187,000

o Medium enterprises, small companies with an average market capitalization and companies with an average market capitalization: ≥ BGN 750,000

• have applied for support for their main economic activity according to the Classification of economic activities - KID-2008. According to the procedure, applicants can claim support only for the code of their main economic activity according to the Classification of Economic Activities - KID-2008.
• have no obligations for taxes and mandatory insurance contributions within the meaning of Art. 162, para. 2, item 1 of the Tax and Insurance Procedural Code and the interest on them, to the state or to the municipality of the seat of the contracting authority and the applicant, or similar obligations, according to the legislation of the country in which the applicant is established, proven by an effective act of a competent authority or the amount of unpaid due taxes or social security contributions is no more than 1 percent of the total annual turnover for the last completed financial year, but no more than BGN 50,000.
• candidates who, through the built photovoltaic system and facilities for local storage of the produced energy, will supply electricity to buildings/objects in which they simultaneously exercise activity in permissible sectors and in inadmissible sectors under the present procedure, in view of the circumstances, cannot participate, that the separation of activities cannot be guaranteed so that activities in ineligible sectors do not benefit from the grant funding provided under the procedure.

Mandatory conditions that activities must meet in order to be funded:

• To be performed only on the territory of the Republic of Bulgaria;
• The installed power of the built photovoltaic system for own consumption for the implementation of an investment should not exceed more than 2 (two) times the amount of the provided power, according to the applicant's current contract with the electricity distribution company, but not more than 1 MW;
• The local energy storage facilities (batteries) should have a total minimum capacity equivalent to storage with a duration of at least 4 (four) hours for at least 25% of the installed capacity of the photovoltaic system built according to the present procedure;
• The photovoltaic system and local energy storage facilities (batteries) should be built only on roof and facade structures of buildings connected to the power transmission, power distribution or closed power distribution network, and/or on real estate to them, in urbanized areas;
• The investment must be carried out on a building/property that is fully owned by the applicant, and when the property is not owned by the applicant, the applicant must have a document establishing the right to build on the property. The investment cannot be carried out on a building/property that is used by the applicant through a lease or concession.
• The limitations specified in the points above are certified by submitting at the application stage a conceptual design or a technical/working design, prepared by a person with a designer's legal capacity, entered in the relevant register of the Chamber of Engineers in investment design.
• The investment must be performed by one contractor (legal entity).

What are the intended eligible activities?

Construction of new photovoltaic installations up to 1 MW for the production of energy from renewable sources for self-consumption in combination with local energy storage facilities (batteries).

The investment should be maintained by the end recipient in the property where it was originally built for at least 5 (five) years from the final payment. For the specified period, the obligation to use the energy produced by the new photovoltaic installations only for own consumption, including the facilities for local storage of the produced energy (batteries), should also be observed.

The investment should be insured against theft, intentional acts of third parties, fire and other natural disasters and other relevant risks for the period from commissioning to a minimum of 5 (five) years from the final payment.

What expenses will be recognized?

Costs for building a photovoltaic system up to 1 MW for own consumption in combination with facilities for local storage of the produced energy (batteries).

The scope of eligible expenses may include: expenses for the acquisition of durable tangible assets; costs of acquisition of fixed intangible assets; costs for construction and installation of roof/facade/adjacent property; and costs for consulting services of an engineering-technical nature. All stated costs should be necessary and directly related to the built photovoltaic systems in combination with batteries.

All investment costs must be incurred by one contractor (legal entity).

The costs for construction and installation work are only permissible insofar as they are directly related to the realization of the construction of a photovoltaic system combined with facilities for local storage.

Under the procedure, only new photovoltaic installations in combination with batteries (in their entirety) are financed, not new components /separate parts/ with which to replace elements of existing and already built photovoltaic systems and/or batteries.

Please note that interested parties can review the documents and requirements presented for discussion and give their suggestions and comments until January 12, 2023.