Wolf Theiss advises DSK Bank AD on the green financing of a 600 MWh battery energy storage project in Bulgaria

Sofia, 18 December 2025 – Wolf Theiss advised DSK Bank AD on the financing of a landmark battery energy storage system (BESS) with a total capacity of 600 MWh located in Nova Zagora, Bulgaria (the “Project”). The Project is sponsored by Enery.

The transaction highlights the growing role of green financing in accelerating grid-scale storage, a key enabler of Bulgaria’s and the region’s energy transition. Beyond senior debt and VAT financing, the structure includes market-based risk mitigants, a tailored security package and a revenue model aligned with evolving merchant dynamics in South-East Europe.

A notable element is its merchant exposure supported by Virtual PPA-based deal with Vitol. This reflects the market’s shift toward hybrid contracting models that monetise storage flexibility and complement variable renewable generation. The deal is among the early examples of such structures locally and offers a scalable framework for future RES-plus-storage financings.

Wolf Theiss advised on all aspects of the transaction, including structuring and negotiation of the financing documents, the security package as well as coordination of inter‑jurisdictional elements. The team addressed alignment between local and international standards, risk allocation across revenue and technology profiles, ESG considerations and collateral arrangements suitable for bankability in a merchant‑skewed context.

“This milestone demonstrates DSK Bank’s commitment to catalysing Bulgaria’s low‑carbon economy through innovative green financing solutions.”

– Pavel Tishev, Head of Project Finance at DSK Bank

“Battery storage is essential for enabling higher renewable integration and we are pleased to support high‑quality projects that pair robust risk management with long‑term sustainability.”

– Ivo Kolarov, Head of Special and Structured Finance at DSK Bank

“This transaction showcases how sophisticated financial structures –⁠ such as Virtual PPAs –⁠ can underpin the bankability of storage assets in emerging merchant markets. We look forward to building on this platform to scale RES plus storage and hybrid offtake across the region.”

– Severin Vertigov, Enery

“From a financing and bankability perspective, we are seeing increasing momentum for merchant PPA-anchored structures, especially when backed by strong sponsors.”

– Katerina Kraeva, Wolf Theiss

“From a regulatory and markets standpoint, this transaction shows how Virtual PPAs and storage can be effectively integrated into the Bulgarian framework to support RES growth.”

– Radoslav Mikov, Wolf Theiss

The Wolf Theiss team was led by Partner Katerina Kraeva (Banking & Finance) and Partner Radoslav Mikov (Energy, Projects), with support from Partner Radosveta Kojuharova and Associate Antoan Marinov (both Real Estate), Counsel Katerina Novakova (ESG) and Associate Paola Zgurova (Banking & Finance).

The transaction was completed in November 2025.