ENERGY SECTOR IN BULGARIA: Overview

• The Bulgarian energy policy is synchronized with the EU – environmental safety and secured energy supply.
• Bulgaria imports 70% of the primary energy resources, which cost 20% of GDP.
• The chart below summarises the relative share of energy producers.

• During the period 1997-2005 the gross consumption of fuel and energy from renewable energy sources (RES) has increased its share from 2,2 % to 5,6 %.
• Main sources are biofuel, hydro and wind energy.
• However, the increase of the relative share from RES is mainly due to the increase of biomass consumption by 200%.
• Hydro power plants have also substatial increase – 70% for the period 1997-2005.

ENERGY SECTOR IN BULGARIA: Legal Framework

Government incentives for energy produced by RES:

• Preferential prices determined by State Commission for Energy and Water Regulation (SCEWR) for new power plants;
• Preferential prices for sale of energy produced by RES;
• Obligatory purchase of energy from RES by the electricity distribution companies and NEK (12 years for power plant put into operation before 01.01.2011);
• Obligatory connection to the grid;
• Issue of certificate of origin

Preferential prices from energy produced from Photovoltaic nodules:

• With Decision Ц-015 from 31.03.2008 the SCEWR defined the following preferential prices for the sale of energy produced by RES based on several criteria – investment size, average annual capacity, operational cost, inflation, capital structure, cost of equity and cost of debt:
  Energy from Photovoltaic power plants (PPP):
  • 367 EUR/MWh for PPP with installed capacity above 5kW
  • 400 EUR/MWh for PPP with installed capacity up to 5 kW
  Energy from Wind power plant (WPP):
  • 95 EUR/MWh for WPP with installed capacity above 800kW and effective working hours up to 2250hrs
  • 85.85 EUR/MWh for WPP with installed capacity up to 800 kW and effective working hours above 2250hrsW
  • 71.56 EUR/MWh for PP with installed capacity under 800kW
  Energy from Biofuel power plants (BPP):
  • 110 EUR/MWh for BPP wood waste with installed capacity up to 5MW
  • 82 EUR/MWh for BPP agricultural waste with installed capacity up to 5MW
  Energy from Hydro Power Plant (HPP):
  • 49.66 EUR/MWh for HPP with installed capacity up to 10MW