The head of the energy committee in Bulgaria's parliament, Delyan Dobrev, said he is 'inclined to consider' the possibility of legislative amendments that will allow renewable energy producers to conclude corporate power purchase agreements (PPAs).
Bulgaria may become one of the first EU member states to change its regulatory framework and allow renewable energy projects to sign (PPAs), as long-term contracts are an essential requirement of banks that extend financing for such projects, Dobrev, said at conference on market integration of renewable energy sources held in Sofia on Friday.
Speaking at the event, which was part of the programme of the Bulgarian Presidency of the Council of the EU, Dobrev suggested that since draft amendments to the energy law are now being considered by the government, additional changes related to corporate PPAs could be considered for inclusion as well.
Tenders financed through deals for statistical transfer of renewable energy within the EU, is another idea, which the Bulgarian government could consider for expanding the clean energy sector in the country, it emerged at the conference.
Bulgaria is currently seeking to renegotiate long-term PPAs, including feed-in tariff contracts with renewable energy producers, in order to oblige them to start selling their entire electricity output on the country's IBEX power exchange from July 1.
Dobrev added that these draft changes will be discussed in parliament on Tuesday.
While Bulgaria is considered a backbencher in terms of electricity market liberalisation, the country has already overachieved its EU-defined target for a 16% share of renewables in its energy mix by 2020.
According to data, presented at the conference by the chairman of the Energy and Water Regulatory Commission Ivan Ivanov, Bulgaria currently has an overall installed power generating capacity of a little over 12 GW, with the share of renewables standing at 43% of the total. Hydro power is the largest clean energy source with 3,204 MW installed, followed by photovoltaic (PV) power plants with 1,043 MW. Wind farms contribute 701 MW of installed capacity and biomass-fired power plants -- 78 MW.
In terms of consumption, the share of renewables in the final energy consumption currently stands at 18.2%, compared with a target of 16%, Ivanov noted.
The government is now considering different opportunities for statistical transfer deals, following the example of Estonia and Lithuania, which have concluded such agreements with Luxembourg. Under the agreements, the two Baltic countries will transmit renewable electricity to the Grand Duchy to help it achieve its 2020 national renewable energy goal.
Statistical transfers provide an opportunity for sustainable development of the renewable energy generation sector in a free market environment, Bulgaria's Energy Minister Temenouzhka Petkova noted at the opening of the event.
A curious idea was suggested by Claude Turmes, a member of the European Parliament from Luxembourg and president of the European forum for renewable energy (Eufores).
Turmes believes Bulgaria can strike a deal with EU countries which are clearly falling short of their renewable energy targets to hold a joint tender for new projects whose energy will be statistically transferred to those who need it to reach their targets. Thus, the Balkan country may take advantage of its vast renewable energy potential and secure funds for the development of new projects.
The Bulgarian government, however, seems more inclined to look for ways to stimulate self-consumption and small-scale decentralised generation schemes.
"Looking at Germany, for example, the large majority of photovoltaic power plants there, both in terms of number and capacity, is owned by individuals or citizens' associations. In Bulgaria, it is the opposite. Utility-scale power plants are dominating the project landscape and they are mostly owned by foreign corporations," Dobrev said.
The Bulgarian government will continue to provide support for small-scale systems like rooftop PV, as these are also helping utilities lower technological losses and avoid costly investments in new power lines, Dobrev concluded.
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Opening of conference Market integration of RES and Transition to Clean Energy
