Information for G03223
Bulgaria's big energy challenge
Bulgaria plays a vital role in European energy security. It is a key transit route for oil and gas pipelines, and has two major new natural gas transit projects. The South Stream pipeline will transport Russian gas across the Black Sea to Burgas, on the Bulgarian coast, and onwards to Europe. Nabucco will transport gas from the Caspian Sea region and the Middle East to Europe.
The government is now seeking foreign investment to expand the power sector. As Bulgaria imports over 70 per cent of its fuel for power generation it is also keen to develop local resources. The huge potential for green power generation, combined with a young market offering competitive prices, makes Bulgaria an attractive destination for foreign investment, which is expected to increase significantly. To make the business environment more welcoming for international partners, the new President needs to push for stronger anti-corruption efforts, promoting transparency and informed public participation in decision-making, as well as support for technical capacity building.