Fraud and land abuse, unauthorized state aid, disinformation and fake news – these are just a few of the harmful consequences that Bulgarian society is suffering to along with the transition to green energy and the construction of renewable energy sources (RES).
In mid-July 2024, Bulgaria was engulfed in a series of fires in extreme heat. Despite the obvious and logical reasons for the disaster – dry and hot weather, combined with irresponsible citizens, in this situation there was a widespread conspiracy theory that forest areas were burned in order to install solar panels or wind turbines on them. In this hypothesis, the interests of several pro-Russian parties seeking to prolong the dependence of the Russian Federation on energy sources were clearly visible. The wave of disinformation became so palpable that it had to be refuted by fact-checking .
Logging, not fires
The truth is much simpler and scarier. When someone in Bulgaria wants to use forest areas to install solar panels on them, they simply cut down the trees and sell the wood. There are plenty of such examples. In the land of the village of Veresko – Ihtiman Municipality, there is also a Buildings photovoltaic park on 600 acres. In the legal framework there is the concept of technical felling for the assimilation of wood from properties with a changed designation. Through such felling, tree species are removed from properties when they are allocated for urbanization and construction. A small but significant need is that in the same plot in which the technical felling has been registered, in order to free up land for solar panels, the European Union has Financed afforestation worth more than BGN 300,000. in the period 2007-2013 under the Rural Development Program. The case is covered by the Bulgarian National Radio, but the first to alert about it was the environmentalist and politician Toma Belev. Той следи етапите от развитието на изграждането на соларния парк и Finds felling of 400 decares of oak and coniferous forests. However, at first glance, there is nothing illegal in this action. It is a consequence of Decision 114 of the Ihtiman Municipal Council, of 31 May 2024

The plot (cadastral number 10690.200.731), which is a forest area, is offered for sale at auction at a starting price of BGN 349,946. The decision states that the future purpose of the property will be for the construction of a solar park. The proposal narrowly passed in the local parliament, with 7 votes against and 9 votes in favor. It is clear from the minutes that the municipal councilors are aware that part of the property is a forest, but the proposal to exclude the forests from the property for sale is not supported by the majority, which dooms them to felling.
The company that builds the facilities is PV Energy Ihtiman. A checkin the case of Mediapool shows that the ultimate owner of the solar power plant is Solaris Park. В последната компания собственици са Kaloyan Velichkov and the German citizen Bernhard Werner Alexander Zuchland. Двамата са собственици и на регистрираната в Германия SUNOTEC . В компанията собственик, като член на съвета на директорите присъства Михаела Велиславова Кръстева. Тя е свързано лице и в други компании на същите собственици. Кръстева е дъщеря на съдията от ВАС Илияна Христова Дойчева.
Judge Iliana Hristova Doycheva enjoys the reputation of an independent and competent magistrate. Still, in itself, the presence of the daughter of a high-ranking magistrate in companies that build solar power plants is a curious fact that raises questions. It is important to note that ten years ago attempts were made in our country to finance RES, probably of non-accidental beneficiaries, with European funds. It was declared” to be inadmissible state aid with public resources.
The case of the felled forest in Ihtiman, which, according to the local municipal officials, has allegedly not been “caught”, is not a precedent at all. Report of the WWF for illegal logging in Bulgaria in the period 2018-2022 found other cases of illegal logging when changing the designation of forest properties. It is in the Pazardzhik region. The experts found probable illegal logging, which was left out of the attention of the forest administration. The properties in question are either in the process of changing their designation – from forest fund to industrial areas, or have already completed a procedure and thus fall out of the scope of control of the forest administration. The specific violation is felling without a permit and transportation of wood without a transport ticket. In April 2023, a Commission at the Regional Forestry Directorate – Pazardzhik made a positive decision on the request of ” REAL STATES” for preliminary approval for change of the purpose of land properties in a forest area in the village of Sbor, Pazardzhik Municipality with a total area of more than 69 decares, falling within the territory of the “South-Central State Enterprise”. A reference in the Register of Felling Permits shows that no felling permits were issued for the land in question, which were a forest fund, for the period 2022 and 2023. The stock of wood in these territories is 400 cubic meters. A reference to the cadastral map of Bulgaria makes an impression that part of the area of the entire photovoltaic park is still forest territory, despite the fact that the park has been built. For this reason, it is difficult for WWF experts to establish the amount of illegal logging from this terrain.
“Conceived” in sin
REAL STATES” have extensive experience in logging in violation of the rules. The company is the owner of the largest solar power plant in Bulgaria, the Balkans and probably in Eastern Europe. This plant was “born in sin”, the entire history of the solar park is littered with violations. The story begins more than 15 years ago. On July 4, 2008, the Municipality of Pazardzhik signed its first contract with a company “REAL STATES”. Срещу 500 000 лв. фирмата, която тогава е еднолична собственост на Гинка Върбакова, придобива около 2 000 декара общинска земя. Инвеститорът поема ангажимент да изгради фотоволтаичен парк със забележителната към онзи момент мощност мощност от 50 MW. Декларираните публично намерения са за почти два пъти по-голяма централа. Мощностите, поне според договора, трябва да бъдат изградени не по-късно от 32 месеца след датата на издаване на строително разрешение. В случай на неизпълнение се предвижда неустойка от 1 милион евро. Във времето соларният проект край Априлци е представян от Славчо Върбаков като “най-големия фотоволтаичен парк в Европа”. През април 2010 г е обявено, че се It is planned to have a total capacity of 80 megawatts. The local government, represented by the former mayor of Pazardzhik, Todor Popov, who is close to Delyan Peevski, pins great hopes on the investment of 200 million euros and assists the Varbakovs in every possible way.
The financing of REAL STATES from the very beginning of the project raises many doubts about opacity. Edition Bivol reveals that part of the funding comes from a company associated with Stanko Stankov’s family. Последният стана известен покрай един от най-сериозните железопътни инциденти от близкото минало. Влакова композиция на юридическо лице свързано със Станков – BULMARKET RAIL CARGO exploited and caused death and destruction at Hitrino station. When REAL STATES applied for a license from the State Energy and Water Regulatory Commission in 2010, it was already the sole property of Petrana Paytakova
– Ginka Varbakova’s mother. The daughter is authorized by her mother to represent the company in relations with the State Energy and Water Regulatory Commission. REAL STATES presents a first-class bank guarantee for EUR 200 million from DEANFIELD SOLUTIONS Merchant and Trade Finance and a EUR 14 million loan agreement with PETROLINKS HANDELS. The potential creditor company “PETROLINKS HANDELS” is Austrian, but was founded by PETROLINKS HANDELS in 2006 by Deyan Dobrev under the name DOBREV GmbH. Deyan Stankov Dobrev is the son of Stanko Stankov, the same one whose tanks exploded in Hitrino. At the same time when he signed the loan agreement with REAL STATES, Deyan Dobrev was a partner with Slavcho Varbakov in the company ” GLOBAL HYDRO ENERGY CONSULT“. Through his Austrian company Deyan Stankov, Dobrev credited his partner’s mother-in-law. The first-class bank guarantee for EUR 200 million, which Ginka Varbakova has provided to the attention of the State Energy and Water Regulatory Commission, is coming to the attention of the State Energy and Water Regulatory Commission by a hollow British company that has never had a banking activity. The first alarming finding on the occasion of the solar park project is made by the Pazardzhik media “Videlina
“. Then, of course, there is no clarity about the financing of the company. The publication documents how Varbakovi’s company illegally cut down and sold about 5,000 cubic meters of wood from the municipal land provided to it. After the illegal logging, the “realization” of the wood follows, with which the investors probably compensated for their costs for the acquisition of the land and part of the solar panels. The selling price of the wood, According to acquaintances, amounted to about 6 million. BGN, if the logs are sold as building material. A year later, Dnevnik Reportedthat the first stage of 1.15 megawatts is ready and put into operation. Edition refers to Ginka Varbakova, which promises to start operating all 80 megawatts by 2014. However, the company has declared to the State Energy and Water Regulatory Commission that it will build 60 megawatts. The next stage of construction is not reached on time. REAL STATES even stopped paying the license fee and accumulated BGN 22,000. obligations to the SEWRC, for which the regulator Ginka Varbakova abandoned this project with an application to the Energy and Water Regulatory Commission on December 28, 2015 for termination of the license for electricity production. The company declares that “there are no construction and unfinished projects and no facilities built and put into operation”. There are all the prerequisites to assume that the project for the “largest solar park in Europe” has crashed. The Municipality of Pazardzhik, in the person of Mayor Todor Popov, however, ” omissions inexplicably” to ask REAL STATES for the penalty of 1 million euros and take back the plot. According to “CAPITAL” Reason for the suspension of the project is likely to be the introduction of numerous restrictions on new renewable energy capacities in the country. At that time, the suspension or freezing of such projects was a trend.
In 2022, the situation is radically different. Ginka Varbakova is already the owner of the largest operating solar park in Bulgaria. For 6 years, from owners of a bankrupt solar business, the Varbakov family has experienced expansion to the largest in the industry. The owners of the company became so strong that even in 2018 they tried through another legal entity – ” INERCOM” to acquire CEZ’s electricity distribution network. All costs for the acquisition of this asset are estimated at more than half a billion euros by CAPITAL.

Financing the purchase turned out to be problematic both in the eyes of the Bulgarian state and in the eyes of the Czech state. One of the working hypotheses for the financing of this purchase by the Varbakov family are assets related to the oligarch Delyan Peevski. Several energy experts expressed the opinion in an informal conversation that it is very likely that during this purchase financial assets of the bankrupt “CORPORATE COMMERCIAL BANK” will be put into circulation. Another hypothesis connects part of the funds with “HYPO ALPE ADRIA LEASING”. It turned out that the names of family members ” Run” together or separately, in an investigation of the management of the company, which is a subsidiary of a large company from Austria. Since 2010, the company has been suing companies from the Varbanov group, but lost them.
The Czech connection
The family’s financial problems began to subside in 2012, when their companies began working with Czech metallurgical magnate Zdeněk Zemek. “CAPITAL”. Obviously, however, this cooperation does not help them to implement their solar project in Pazardzhik on time. However, the main assets of INERCOM, the photovoltaic parks united in the project ” Hadzhiyski livadi” around the village of Malo Konare, were built with his help, expressed in financing of a little over 22 million leva. Euro. In 2015, Zemek left his partnership with the Varbakovs, although in 2017 he returned again for a short time
as a partner, says Bivol. The Varbakovs’ loans to Zemek have been refinanced by UBB, which is still among the main creditors of the companies under the umbrella of Solar Green Energy. At that time, the Zemek family had problems with the law in the Czech Republic and this is one of the possible explanations for their withdrawal from the solar segment of the Bulgarian energy sector. Another disturbing point is that Nikola Molchan, who is alleged to be linked to Zdeněk Zemek, is being investigated for murder in Bulgaria. It was he who was the Varbakovs’ translator during their negotiations with CEZ.
If the trick passes
In Pazardzhik, since 2022, there has been persistent talk that companies associated with this family are illegally “using” agricultural land and forest fund around the already realized solar fields in order to deploy more panels. This happens through notarial deeds of ascertainment, issued on the basis of a circumstantial verification. The same citizens testified before a notary – Milena Minkova – that “REAL STATES” has been in possession of the lands of unsuspecting owners – third parties, from the region of Pazardzhik, for more than 9 years and has acquired them by prescription. Interestingly, the witnesses were or are employees of the company. History is Told by several media. First from BNT Reportedthat owners of hundreds of acres of agricultural land have filed a complaint with the competent authorities that their properties have been stolen. According to lawyer Borislav Naydenov, who is leading the owners’ lawsuit against REAL STATES, since 2020 the company has acquired through circumstantial inspections over 1400 agricultural properties with a total area of more than 8 thousand acres. The value of the “utilized” properties is estimated at approximately over BGN 10 million. After that, the properties acquired in the above manner were merged into larger regulated plots by decisions of the Municipal Council of Pazardzhik. Then their purpose was changed so that they could be built on them.
It is indisputable that the properties have not been owned continuously for 10 years by REAL STATES, as most of them during this period have been cultivated by their owners or leased. This is an easily identifiable fact through the State Fund “Agriculture”, where the areas were declared and subsidies were paid for them. Another part of the properties were not processed at all after they were restituted, so no one could acquire them by prescription, much less “REAL STATES”.
It is documented that the aggrieved persons are filing lawsuits en masse and restoring their rights to the land. Initially, when the scandal broke out, REAL STATES recognized the claims, but now their practice is to dispute them in order to have time to find the plaintiffs and negotiate with them or possibly force them to give up their claims. Sources from Pazardzhik claim that the plots “used” illegally by “REAL STATES” were bought at a high price after the ownership of them was restored in court. The fact is that some of the property identifiers no longer exist.
Lawyer Valeri Peychev has filed a complaint on behalf of a group of his clients and the Prosecutor General in connection with the systematic seizure of other people’s property. A prosecutor from the Supreme Cassation Prosecutor’s Office has been appointed to oversee the investigation. In the Pazardzhik District Prosecutor’s Office, it is monitored by Prosecutor Rumyana Popova, who has been “conducting an inspection” for more than two years. According to acquaintances, she was of the opinion that the case should be opened against an organized criminal group, but she kept it with her and did not send it to the Pazardzhik District Prosecutor’s Office.
There is reason to suspect that the municipality of Pazardzhik, represented by the previous municipal council and the former mayor Todor Popov, has assisted Ginka Varbakova and REAL STATES in the “absorption” and consolidation of agricultural land around the villages of Apriltsi and Sbor. In 2022, the Pazardzhik Municipal Council, through three of its decisions, allowed the consolidation of agricultural land plots – pastures and fields, on which the largest photovoltaic park in the Balkans will be built. OnDecember 30, 2022, the municipal council in Pazardzhikauthorizes Popov to submit an application to the Municipal Office of Agriculture for a change in the way of permanent use of an agricultural, forestry, departmental road near the villages of Apriltsi and Sbor. In addition to erasing kilometers of road, the municipality also changed the purpose of more than 35 acres of agricultural land. Rural roads are being erased so that solar panels can be spread over them. In practice, the Municipal Council has become the main assistant in the illegal actions of the REAL STATES. There is a suspicion that detailed development plans have been issued for the lands, regardless of their agricultural category. By virtue of these Detailed Development Plans, they have been reallocated to land for the solar park. The small catch, however, is that these must be lands of seventh or lower category under the Agricultural Land Protection Act.
The big picture
The designation of over 186 acres of land in the lands of the villages of Sbor and Apriltsi – Pazardzhik region, where the solar park of REAL STATES is located , has been changed by DECISION No KZZ-18 of September 8, 2023. on The Agricultural Land Commission at the Ministry of Agriculture and Food. With the same act, about 3,000 decares of agricultural land changed its purpose for non-agricultural needs. The specialized site was the first to alert about this The Farmer. With DECISION No KZZ-16 of 14 August 2023 The commission also changed the status of municipal land on which REAL STATES had been granted the right to build. The company wants a change in the designation of land that is 7 or 8 category – non-irrigated.
When it comes to the re-categorization of agricultural land for solar power plants, there is always a doubt about something wrong. At the end of October last year, Charges brought of the Chairman of the Agricultural Academy Prof. D.Sc. Eng. Martin Banov and the Deputy Director of the Pushkarov Institute Veneta Krasteva. This happened because of a scheme allegedly by the prosecutor’s office for recategorization of agricultural land in order to lower their category and the subsequent construction of photovoltaics on them. The presentation of the land as infertile, according to the prosecutor’s office, was done with the assistance of the two defendants – professors Banov and Krasteva. Subsequently, the accusation in this investigation was “dropped”, but doubts about something wrong remain. It is noteworthy that the Pazardzhik region was not an object of interest to investigators. An official source makes it clear that since the beginning of 2021, the Ministry of Agriculture has received a total of 366 objections against issued acts for categorization of agricultural land in case of a change in their designation by the relevant Regional Directorate of Agriculture. The largest area of agricultural land for which the MAF has received an objection against an issued act for categorization is a plot of 793 decares. For the period from the beginning of 2022 to July 2024, expert examinations of the category of a total of 18,651 decares of agricultural land were carried out by the Institute of Soil Science “Nikola Pushkarov” – Sofia, whose deputy director Veneta Krasteva was accused of corruption. The area of agricultural land with a changed designation, according to data from the Ministry of Agriculture and Forestry, is about 9000 decares for the period from the beginning of 2021 to August 2024. This includes lands whose designation has been changed by decisions of commissions at the Regional Directorates of Agriculture. In a limited number of cases, we also have agricultural land for which certificates have been issued for the construction of national sites or municipal sites of primary importance, which become public state or municipal property. Usually such are highways, railways, cemetery parks, landfills, etc.
The MAF reports that during the procedures for changing the designation of agricultural land for non-agricultural needs, there is an increased interest in the districts of Plovdiv, Sofia and Blagoevgrad. Serious interest has also been shown in the district of Pazardzhik to carry out the procedures under the Ordinance on Categorization of Agricultural Land in the event of a change in their designation. In other words, we can assume that it is in the district of Pazardzhik that there is an increase in attempts to recategorize former agricultural land and lower their category.
Result
According to many, REAL STATES has implemented the most significant “illegal” land consolidation in Bulgaria. In Pazardzhik, their solar park is known as the “glass Chinese desert” because of the Chinese origin of solar panels. According to the locals, the solar fields changed the local climate. And this result is achieved with illegally acquired lands. A large part of the plots “absorbed” through circumstantial checks were mortgaged in D Bank for 5 million euros. In fact, large loans from banks in Bulgaria are taken out by Varbakov’s companies after 2023, when the land fraud became publicly known. From the Commercial Register we get information about only one earlier loan. REAL STATES withdrew it in 2015 from UBB. This is probably the same loan taken out to refinance Zdeněk Zemek’s participation. An annex from 2023 under the loan agreement reflects an obligation of EUR 5,000,000. The bank’s receivable is secured by a special pledge on assets of the photovoltaic park. (To date, the company’s pledge to UBB is on current and future receivables amounting to EUR 19,500,000. It was established in connection with future receivables arising from the Electricity Purchase and Sale Agreement DPP016/28.6.2023, concluded between REAL STATES and ” F INVEST“, concerning receivables in connection with the Photovoltaic Power Plant “REAL STATES”.) Obviously, in 2023, the liabilities of REAL STATES are changing in view of the increased volume of work and the need to meet unexpected expenses. A loan of over EUR 26 million to Eurobank is also secured with collateral. The already mentioned obligation to D Bank is in the amount of BGN 9,700,000. We are also opening a EUR 12 million loan to UniCredit. It is also secured by a special pledge of equipment from the photovoltaic plant.
The failed municipal solar park
After the replacement of Todor Popov with Petar Kulinski, the work of “REAL STATES” and the family in general. Varbakovi in Pazardzhik is far from flowing so smoothly. When Kulinski won the elections, Todor Popov and the Varbakov family began to build a municipal solar park. The enterprise is called ” Pazardzhik Solar City” and there was a “flying start“. Nearly 200 decares of municipal land have been contributed to the company. “INERCOM” of the Varbakov family was supposed to implement the project. The price for the construction of a 4,053,140 Wp power plant on a plot of 7 acres is BGN 10,939,608. with VAT. The price is extremely intimidating. According to experts, the investment for such capacities by 2023 should have been about BGN 3,860,000. The case looks like an attempt to drain the municipal budget of Pazarzhdik by building facilities at double the price. Shortly after Todor Popov surprisingly lost the elections in Pazardzhik, INERCOM filed a request for termination of the contract due to a delay in the approval by EVN of the projects for the construction of a plant for the production of electricity from photovoltaic converters. Thus, everything ends “pito-paid” and the municipality avoids the deal in which it would pay double the price for a municipal solar park.
The Wind of Change
As soon as he arrived, Petar Kulinski began to revise the relations between the municipality and the Varbakov family. Based on Decision No. 239 of October 20, 2022 and Decision No. 273 of November 24, 2022 of the Municipal Council in Pazardzhik, “REAL STATES” prepares for the and conducts a procedure for approval of Detailed Development Plans – Plans for Regulation and Stagnation for Change of Use of Several Properties in the Lands of the Villages of Apriltsi and Sbor. The company wants to be established the “promised” ceded right to build, which is reflected in Decision No. 239 of October 20, 2022. From “REAL STATES” insist that for the properties mentioned in the two decisions of the Pazardzhik General Assembly from 2022 there are already entered into force DDP-PPP and it is envisaged to build 45MW photovoltaic installations, for the construction of which the necessary equipment and materials have been delivered for a total value of more than EUR 40 million. The latter statement leaves us with the feeling that the company is working hard at double market prices. The panels alone should be up to BGN 43 million, and with the adjacent infrastructure, such an investment would hardly exceed BGN 48 million. From REAL STATES, however, is claiming a BGN 78 million investment and the provision of 300 jobs. In 2024, the Municipality of Pazardzhik refuses to approve the Detailed Development Plans – Plans for Regulation and Stagnation and for Change of Purpose of the Properties in the Lands of the Villages of Apriltsi and Sbor. Accordingly, they do not establish a ceded right to build. The municipality found that in the specific case, the procedures relate to plots that are mainly 5th category of irrigated agricultural land. REAL STATES plans to deploy solar panels there, but this would not be legal. The Municipality of Pazardzhik motivated its refusal with the fact that The construction or expansion of sites for the production of electricity from renewable energy sources is allowed on non-irrigated agricultural land from the seventh to the tenth category or non-categorizable lands, and the DDPs are for irrigated agricultural land – fifth category. The Administrative Court of Pazardzhik rejects the appeal of REAL STATES against the refusal to coordinate the Detailed Development Plans and change the designation of the agricultural areas. We can only guess whether, and if so, how many municipal and private plots of sixth and higher (fifth, fourth, etc.) category were used for the deployment of solar capacities, after their purpose was changed and their category was eventually changed. How exactly the change of category happened is also a topic that has become clear that raises many questions.
This investigation is supported by Journalismfund Europe and is part of a cross-border project in cooperation with the Rise Project

Lead photo: Ginka Varbakova (left) and Todor Popov – former mayor of Pazardzhik, against the background of the photovoltaic park “Real States” | Photo of the park with drone and collage: BIRD.BG
Материалът Through corruption to green energy е публикуван за пръв път на BIRD.















