site.btaBulgaria May Lose BGN 2 Bln-plus after Lawmakers Fail to Adopt Legislation on Energy - Experts

Bulgaria faces a serious risk of losing at least BGN 2 billion under the REPowerEU chapter of the Recovery and Resilience Plan, after the 50th National Assembly failed to adopt key decisions related to these funds, Association Solar Academy Bulgaria warned. On the last day before the dissolution of the Parliament, the deadlocked session prevented the adoption of Bulgaria's Climate Neutrality Roadmap. The caretaker Government lacks the mandate to renegotiate part of the energy reforms.

These documents are crucial for the second payment under the Recovery and Resilience Plan, which amounts to EUR 653 million. Without them, Bulgaria is at risk of losing around EUR 266 million or more than 30% of the total sum. The deadline to act on this issue is October 20, 2024, while Bulgaria is already last in the European Union to not have received the second tranche of the Recovery and Resilience Plan. One of the key issues relates to the future of coal-fired power plants in the country, the Association said.

Association Solar Academy Bulgaria Chair, Dr Veselin Todorov, said: "At the moment, even on a market basis, electricity generation from coal plants is not cost-effective. However, no one is discussing the closure of the mines because they also supply key raw materials for the renewable energy industry, such as lithium, copper, aluminium, iron and steel. Over the last year, it has been obvious that the price of electricity from the thermal and coal plants is not lucrative, especially in February, March, April and May, when these plants were not operating. At the moment, they are operating because of the increased demand for electricity, but with the addition of the carbon levy and with more and more investment in renewables on the electricity grid, they will remain the most expensive source and will be financially and economically unviable. A photovoltaic system with an energy storage system, purely economically, offers a lower cost for the next five years, and the investment is more profitable than that in thermal power plants. The cost of electricity generated and stored in a battery (based on the investment now) is less than BGN 180/MWh with a 10-year usage horizon, while currently the carbon charge for coal-fired thermal power station alone is around BGN 130/MWh. These charges will rise in the next years."

Experts warn that the problem of jobs in the sector is often overexposed in political contexts, especially before elections. They believe that instead of creating panic and uncertainty, long-term measures should be implemented to retrain affected workers to provide them with employment opportunities.

Todorov reports that there are many vacancies in the renewable energy sector for narrow specialists such as electricians and engineers. Even though it has been four years since it was announced that coal plants will close in 2038, adequate preparation is yet to take place. The head of the Association is adamant that paying 30 salaries at once, as was promised a year ago, would be inefficient and turn these workers into a burden on the welfare system. An alternative solution proposed by Association Solar Academy Bulgaria is to have these salaries paid in instalments, in addition to the basic salary, if the workers continue their careers in the energy sector or in the field of renewable energy.

Association Solar Academy Bulgaria points out that funds from the Recovery and Resilience Plan are vital for the development of the Bulgarian economy - for modernization, digitization and innovation, in renewable energy and other technologies. If these funds are lost, Bulgaria will fall behind all other EU Member States.