site.btaEnergy Act Amended Conclusively

Sofia, January 21 (BTA) - Parliament on Thursday passed
conclusively amendments to the Energy Act to scrap spinning
reserve auctions.

Under the provisions, the Electricity System Operator will
secure the necessary reserves by concluding contracts for
ancillary services on a market principle following an auction.

Producers with a total installed capacity of between 500 kW and
1 MW will be able to sell the generated electricity on the free
electricity market.

As of July 1, 2021, end suppliers will not purchase electricity
at preferential prices from producers of electricity from
renewable energy sources, generated by facilities with a total
installed capacity of between 500 kW and 1 MW.

By May 31, 2021, producers will conclude with the Electricity
System Security Fund a premium-compensation contract for the
quantities of electricity produced by them within the amount of
their determined net specific electricity production on the
basis of which their preferential price has been set up. The
premium is fixed annually by the Energy and Water Regulatory
Commission by June 30.

Data about the standardized load profile (SLP) will be made
available. Parliamentary energy committee chair Valentin Nikolov
 said that electricity distribution companies will be obliged to
 include SLP data in customers' bills and based on that,
electricity consumers may pick suppliers.

The scope of financing from the Electricity System Security Fund
 is broadened, said Nikolov, and it will be able to make the
interest payments on companies' loans for energy efficiency
projects.

Nikolov told Mediapool.bg that the Fund could spend 2 or 3
million leva a year on interest payments. However, businesses
warn that this scheme might benefit mostly projects for energy
efficiency retrofitting.

Definitions of 'green hydrogen' (derived through hydrolysis or
other technologies using renewable energy sources) and of
'inter-system gas pipeline' are provided.

Intergovernmental agreements with third countries in relation to
 the operation of a gas transmission pipeline or an upstream
pipeline network concluded before this law takes effect will
remain valid until the enforcement of a new agreement between
the European Union and the third country.

"We have done several good things and they give us an advantage
to meet our targets by 2030," said Nikolov after the adoption of
 the amendments. He noted that Bulgaria is among the few
countries which define 'green hydrogen' and bases on the EU Gas
Directive its relations with third countries and with the EU in
order to encourage hydrogen production and alternative sources.
RI/PP