BAGE: Our main goal is to turn the interest in geothermal energy into working projects.
- 4 days ago
- 3 min read
Eng. Nikola Sechkaryov, Chairman of the Bulgarian Association for Geothermal Energy (BAGE), for the Annual Almanac of the Bulgarian Energy Sector “Energy Info BG 2026”.
2025 was a year of visible progress and consolidation of geothermal energy as a recognizable public topic and as a real part of the energy agenda in Bulgaria. The Bulgarian Association for Geothermal Energy (BAGE) has consistently worked to raise awareness, improve understanding of technological solutions, and overcome key regulatory, administrative, and financial barriers to investment.
Throughout the year, the focus was placed on the practical advancement of geothermal projects on the ground. The Association worked actively with municipalities to identify applicable scenarios for buildings, neighborhoods, and public facilities, including possible integrations with district heating networks, as well as the preparation of project concepts and partnerships.
In parallel, BAGE is implementing a project funded by the European Climate Foundation aimed at supporting municipalities in building administrative and technical capacity, preparing analyses, and carrying out targeted communication activities to accelerate the deployment of geothermal energy at the local level.
During 2025, BAGE also worked in close cooperation with the Ministry of Energy on the preparation of a grant scheme under the Modernisation Fund to finance geothermal projects—both shallow and deep geothermal. This step is of key importance, as targeted financing and the reduction of investment risk are crucial for the real launch and development of the market.
Grant and guarantee mechanisms are decisive
The strongest driver at present is the growing demand for predictable, local, and low-carbon energy. Geothermal energy provides baseload and continuous capacity independent of weather conditions, making it a strategic resource for energy security, the decarbonisation of heating, and the stability of energy systems.
Technologically, two main directions are developing: shallow geothermal systems with heat pumps for heating and cooling buildings, and deep geothermal for district heating and potentially electricity generation. Geothermal heat pumps are expanding rapidly, particularly in new construction and building renovations, achieving very high efficiency when properly designed (COP 8–9), while modern drilling technologies contribute to reducing investment costs.
In deep geothermal development, key factors include technological progress, geological modelling, and risk-sharing mechanisms, with public–private partnerships increasingly used across Europe. Bulgaria is also making progress in building a regulatory framework and conditions for energy communities, with the active expert participation of BAGE.
At the European level, a dedicated Action Plan to accelerate the deployment of geothermal energy is expected. Geothermal contributes to energy security and retains added value within the EU, as a large share of the equipment is produced within the Union. From a market perspective, targeted grant and guarantee mechanisms are decisive, and the planned Bulgarian scheme under the Modernisation Fund will be critical for launching and scaling the sector.
Working to reduce administrative barriers
In 2026, our main priority is to transform the growing interest in geothermal energy into real, functioning projects by improving investment conditions and strengthening the capacity of both the public and private sectors. The focus is on implementing geothermal solutions in municipalities—for public buildings and urban areas—including integration with local energy systems, energy communities, and sustainable business models.
Financial instruments will play a key role. BAGE will continue its partnership with the Ministry of Energy to ensure the effective implementation of the Modernisation Fund grant scheme, as well as the development of complementary mechanisms to reduce investment risk. At the same time, we are working to limit administrative barriers and increase predictability through clearer procedures, standards, and training.
Our goal for 2026 is clear: to move from intentions to the first visible projects that can serve as models for scaling geothermal deployment across the country. BAGE will continue to bring together expertise, institutions, and businesses in order to turn Bulgaria’s geothermal potential into competitive and clean energy.
