site.btaEnergy Association:Brexit Will Impact Negatively Bulgarian Energy Sector

Energy Association: Brexit Will Impact Negatively Bulgarian Energy Sector

Sofia, July 4 (BTA) - The Bulgarian Energy and Mining Forum (BEMF) suggests that the effects of Brexit on the Bulgarian energy sector will be negative. BEMF Chairman Ivan Hinov told a BTA news conference on Monday that one of the adverse effects will be slowing down of all future nuclear projects in Europe as Britain was the main engine behind them.

Brexit will make more difficult access for state-run energy companies to cheaper loans because of the more expensive lending due to the lowered credit ratings of the UK and the EU. The more expensive loans will impact in particular funds for improvement of critical energy infrastructure. BEMF proposes a special investment fund which will raise contributions from pensions and insurance companies along with grants.

With the departure of the UK the EU will lose a net donor of 14 billion euro, which will cause EU programmes to be reconsidered, according to the BEMF.

According to energy experts, in a turbulent environment the interest in investments including in energy will drop sharply. However, the Association said that Bulgaria has an asset which may prove highly liquid referring to the nuclear equipment for the Belene N-plant. Experts estimate that now the market price is double.

Another aspect of Brexit is the change in the EU enlargement policy in regard to the Western Balkans and the courting of Ukraine for access to cheap electricity. Bulgaria should use these processes to launch an electricity hub in addition to the gas hub it is planning.