Todor Georgiev of Smart Energy Group: International interest in solar energy remains strong, but predictability is the key

Bulgaria offers favourable conditions for the development of solar energy and continues to attract the attention of international investors. Nevertheless, some of them prefer to wait, as neighbouring countries such as Romania and Greece are perceived as more predictable markets. This is one of the notable observations made by Mr. Todor Georgiev, Executive Director of Smart Energy Group, with whom we discuss the investment climate, the development of photovoltaic technologies and the international plans of Smart Solar. The company already has experience gained from dozens of projects in Europe and beyond, remains actively engaged in Portugal and is exploring opportunities for expansion into the Middle East.

“International investors’ interest in Bulgaria’s renewable energy sector is undoubtedly real and sustained. We are part of the common European market, have excellent natural conditions and competitive construction costs. Bulgaria has long been on the radar of major infrastructure funds. The reality, however, is that this capital is currently very cautious. Investors are not entering the market aggressively; rather, they are taking a wait-and-see approach because, at the regional level, we compete with markets such as Romania and Greece, which are often perceived as more predictable,” Mr Todor Georgiev told BalkanEngineer.com.

For investments in large-scale photovoltaic power plants, delays in grid connection can change the entire financial framework of a project. Equipment has specific delivery lead times, construction activities must be scheduled in a defined sequence, and bank financing is tied to the fulfilment of pre-established conditions. If there is insufficient clarity regarding connection costs or the grid connection schedule, the investor must factor in additional risk as early as the preparation of the financial model. In this way, administrative uncertainty can increase a project’s costs, even when the technical conditions for its construction are favourable.

Image source: Smart Solar, ©Engineer BG via Canva.com