By  decision of the Council of Ministers, it has been approved that the draft State Budget Act of the Republic of Bulgaria for 2027 should provide for the possibility of issuing state guarantees under new loan agreements entered into by National Electricity Company EAD, totalling up to EUR 228,086,452, to finance the project “Increasing the storage capacity of the lower reservoir of Chaira PSHPP through the construction of Yadenitsa dam and a reversible pressure tunnel connecting it to Chaira dam.

The decision is an important step in the preparations for the project’s implementation, as it paves the way for securing loan finance on favourable terms.

Yadenitsa project envisages increasing the volume of the lower reservoir of Chaira PSHPP through the construction of Yadenitsa reservoir and a reversible pressure tunnel connecting it to Chaira reservoir. Its implementation will significantly expand the operational capabilities of Chaira PSHPP in both pumping and generating modes and will contribute to the more efficient utilisation of the existing hydropower infrastructure.

The project is of strategic importance for the long-term storage of electricity and for enhancing the flexibility of the electricity system as the share of generation from renewable energy sources increases.

In April 2026, Yadenitsa project was included in the Union’s second list of projects of common interest and projects of mutual interest. Its status as a project of common interest confirms its importance for the development of a more flexible and reliable electricity system at regional and European level.