site.btaGovernment Signs Memorandum to Launch Large-Scale Renewable Energy Programme

The government’s ambition is to create the largest energy community, which will reduce electricity bills and allow the Electricity System Operator (ESO) to balance this energy in the best possible way in the event of a surplus, Energy Minister Zhecho Stankov said on Thursday, addressing the signing ceremony of a Memorandum of Cooperation for the implementation of a programme for accelerated deployment of renewable energy sources (RES) on public buildings.

According to Stankov, the installation will be used by municipalities immediately after its construction, and they will have the flexibility to determine the payment schedule over time. The financial model ensures that payments will not exceed the energy savings achieved. Furthermore, part of the savings can be retained by the municipalities, with the repayment period potentially extended to reinvest the freed-up funds in municipal buildings and other projects.

The State Budget Act will also include provisions to exclude ESCO contracts from the rules that limit municipalities when attracting external funds.

Stankov noted that the new financial mechanism solves two main problems. He reminded that municipalities and businesses have been looking for opportunities to invest in their own energy capacities where they consume electricity. One problem is related to financing, and the other concerns the lack of expertise in effectively managing such installations. The creation of a dedicated project company solves both issues. Municipalities, if they wish, can approach this company, which is 100% owned by the ESO, to build photovoltaic installations with energy storage systems without using municipal funds.

Deputy Prime Minister and Minister of Innovation and Growth Tomislav Donchev, emphasized that lower electricity costs for businesses directly lead to greater competitiveness. He believes that this measure, along with others, will contribute to enhancing the competitiveness of Bulgarian enterprises. Lower electricity costs for households will result in higher disposable income and an improved quality of life. The same applies to public institutions, which will have more funds to implement their policies.

"Unlike other measures, here we are talking about a recyclable resource," Donchev pointed out, expressing hope that this first step will be expanded, as the potential is enormous.

The Memorandum was signed by the ESO, the Bulgarian Development Bank, the Association of the Organizations of Bulgarian Employers and the National Association of Municipalities in the Republic of Bulgaria.