Financing
Opportunities and Programs
Financing Options for Geothermal Energy Projects
Geothermal energy projects are set to benefit from a growing number of exciting financing opportunities, both at the national and European levels. The European Union and the European Commission are placing a strong emphasis on this renewable energy source, seeing it as a crucial part of the green transition. With dedicated funds and initiatives aimed at supporting innovative solutions like closed-loop ground source heat pumps, these financing options not only help accelerate the adoption of geothermal energy but also play a vital role in reducing carbon emissions. This is the perfect time to tap into the EU’s commitment to a sustainable, low-carbon energy future!
In Bulgaria and across Europe several dynamic funding programs are currently available to support projects related to the development of geothermal systems, with a particular focus on closed-loop geothermal heat pump systems. These programs are not only designed to foster innovation but also contribute significantly to the transition towards sustainable, energy-efficient solutions.
Modernisation Fund
The Ministry of Energy of the Republic of Bulgaria has released a draft Indicative Work Program aimed at supporting projects through the Modernization Fund for the period 2025–2026. This program is set to provide crucial funding for initiatives in the following key areas:
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Heating and Cooling from Renewable Energy Sources (RES): A significant portion of the funding is earmarked for projects that install geothermal heat pump systems, which provide highly efficient and environmentally friendly solutions for heating and cooling buildings.
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Exploration and Operational Activities for Geothermal Drilling: The program also finances research and the exploitation of geothermal resources, making it easier for businesses and institutions to tap into this reliable and sustainable energy source for a range of applications.
The goal of this program is to stimulate investments in cutting-edge, sustainable energy technologies, supporting projects that significantly contribute to decarbonizing the energy sector and promoting greener infrastructure.
Just Transition Fund (JTF)
The Just Transition Fund (JTF) is part of the EU’s strategy to support regions impacted by the green transition. In Bulgaria, €1.2 billion has been allocated to help coal-dependent areas, such as Stara Zagora, Kyustendil, and Pernik, shift to sustainable energy sources like geothermal power.
Key Benefits for Geothermal Projects:
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Economic Diversification: Supports renewable energy development, including geothermal systems.
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Job Creation: Funds job training and reskilling, particularly for those transitioning to renewable energy.
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Environmental Rehabilitation: Restores degraded lands for green energy projects.
The JTF offers significant opportunities for geothermal energy projects in Bulgaria. By leveraging these funds, stakeholders can:
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Develop Geothermal Facilities: Invest in geothermal heat pump systems, enhancing renewable energy capacity.
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Create Green Jobs: Generate employment in geothermal sector roles.
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Enhance Energy Security: Diversify the energy mix by reducing dependence on fossil fuels and boosting resilience.
This funding accelerates Bulgaria’s green transition and geothermal energy development.
European Structural and Investment Funds (ESIF)
European Structural and Investment Funds (ESIF) support regional development, sustainability, and economic growth in Bulgaria. These funds, including the Cohesion Fund, European Regional Development Fund (ERDF), European Social Fund (ESF), and European Agricultural Fund for Rural Development (EAFRD), offer financial support for renewable energy projects, including geothermal energy systems.
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Cohesion Fund: Supports energy, environment, and transport projects in less-developed regions, including geothermal energy systems for heating and cooling.
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ERDF: Funds projects that enhance competitiveness, innovation, and renewable energy systems, including geothermal technologies.
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ESF: Promotes employment, skills, and social inclusion, with opportunities for training in the renewable energy sector.
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EAFRD: Supports sustainable rural development, including geothermal energy for agricultural applications.
Bulgaria can access ESIF for geothermal projects that improve energy efficiency and contribute to the green transition.
EEA and Norway Grants
The EEA and Norway Grants have previously funded the installation of geothermal energy systems in Bulgaria, particularly for heating and cooling applications in public buildings. Municipalities can apply for funding under the "Renewable Energy, Energy Efficiency, and Energy Security" program of the Financial Mechanism of the European Economic Area. These funds are part of Norway’s contributions to reducing economic and social disparities in Europe, focusing on green and inclusive projects.
Key Funding Areas:
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Environmental Sustainability: Supports projects that reduce carbon emissions and enhance renewable energy systems, including geothermal technologies.
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Energy Efficiency: Funds geothermal projects that improve energy efficiency, such as district heating systems using geothermal energy.
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Climate Change Mitigation: Geothermal projects that contribute to reducing fossil fuel dependence and decarbonizing heating systems are eligible.
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Innovation and Research: Grants support research into advanced geothermal systems and energy storage solutions.
Bulgaria can apply for funding through various programs focusing on renewable energy, climate action, and sustainable development.
