site.btaEnergy Minister: Market Liberalization Starting July 1 Will Not Increase Electricity Price

In an interview for BTA on the main challenges facing the sector and the measures being taken to stabilize and develop the energy system, Minister of Energy Zhecho Stankov said that the government has a clear vision and is already working to accelerate the implementation of strategic energy projects. He specified that if the liberalization of the market starts as planned, on July 1, 2025, it will not increase the price of electricity, since the Ministry has come up with a mechanism to compensate households through the Electricity System Security Fund.

The draft law on compensation of household customers is ready and provides for a five-fold increase in the penalties, up to BGN 50,000, for electrodistribution companies in case of non-fulfilment of their obligations to Bulgarian consumers. Additionally, the Energy and Water Regulatory Commission will be given more power to oblige electrodistribution companies to invest 30% of their investments in existing infrastructure in order to improve electricity supply services.

Stankov reported that he took over the Ministry of Energy at a time when a number of key processes were delayed due to the uncertainty and hard commitments made over the past four years. He added: "The good news is that Bulgaria now has a regular government whose aim is to improve people's lives. We have a vision, and we are already working hard to get our country's strategic energy projects moving at a fast pace. Our goal is clear – sustainable and working energy industry through increased connectivity, new infrastructure, diversification of supply, development of nuclear power, deployment of green technologies and storage systems, and last but not least, promotion of oil and gas exploration in Bulgaria's part of the deep Black Sea."

An important issue that the Minister pointed out was the household programme that he developed back when he was the deputy minister. He said: "It was launched in a foolish and cumbersome administrative manner. Because of the cumbersome procedure, instead of tens of thousands of contracts being signed so that more people could have photovoltaic installations on their roofs, only 1,500 households have submitted documents. For nearly a year and a half, these contracts have been sitting in the Ministry of Energy." He reported that an elderly lady from Burgas, on the Black Sea, saw her monthly electricity bill drop from more than BGN 100 to under BGN 6 after she had a solar panel installed on her roof.

Stankov said that nuclear energy has an increasingly important role to play in ensuring energy security. He reiterated that Kozloduy NPP - New Build EAD and the consortium between US-based Westinghouse and Korea's Hyundai have signed an engineering contract. Kozloduy NPP - New Build has been capitalized with BGN 1.8 million. Bulgaria's ambition is to become the first country in Europe with a working AP1000 reactor.

Commenting on the role of coal in Bulgaria's energy mix, Stankov said that Bulgaria declared in its long-term plans and strategic documents that coal plants will continue to participate in the energy mix until 2038. This is necessary given that last winter, the country reached nearly 8,000 MWh of electricity consumption, with 40 to 60% of power having been produced by coal plants.

The Minister is confident that Bulgaria has the potential to be a regional leader in green energy production. Accelerated integration of European legislation related to renewable energy is among his team's priorities.

The latest initiative to promote investment in renewable energy projects took last week when the Electricity System Operator, Bulgarian Development Bank, Association of the Organizations of the Bulgarian Employers, and the National Association of the Municipalities in Republic of Bulgaria signed a Memorandum of Cooperation for the implementation of a programme for accelerated deployment of renewable energy on public buildings. The mechanism will allow schools, kindergartens, hospitals, municipalities, as well as enterprises to become energy independent.