Axpo and Advance Green Energy sign hedging agreement for Bulgaria’s largest operational BESS

Swiss energy producer and trader Axpo and Sofia-based renewable energy company Advance Green Energy have signed a long-term financial hedging agreement for the largest operational Battery Energy Storage System (BESS) in Bulgaria, located near Lovech in north-central Bulgaria.

According to the official announcement, the agreement is designed to secure predictable revenue streams for the BESS facility by mitigating exposure to electricity market price volatility. The financial hedging structure enhances the project’s long-term profitability while supporting grid stability through improved balancing capacity.

The agreement reflects the increasing sophistication of financial instruments in the Southeast European energy market, particularly in the rapidly expanding storage segment. By stabilising cash flows, the project becomes more attractive for institutional financing and long-term investment.

Comment by the Institute of Danube Research 
Experts of the Institute of Danube Research note that such financial arrangements represent more than a commercial contract. They determine the transition from fragmented investments in energy storage facilities to the formation of a comprehensive financial and market environment capable of ensuring the systemic scaling-up of electricity storage technologies at the regional level.

In the broader Danube–Black Sea context, the development of large-scale BESS projects strengthens energy security, facilitates renewable integration, and contributes to the resilience of interconnected power systems in Southeast Europe.