Bulgaria to impose cap on renewable energy installations - report

(ADPnews) - Sep 27, 2010 - Bulgaria intends to impose a 1,500-2,000 MW cap on new green energy projects as it strives to avoid a steep rise in power prices and ease pressure on the grid, Economy and Energy Minister Traicho Traikov told Reuters in an interview published on Friday.

The cap will be part of a new law on renewable energy, which is expected by the end of the year.

"We are planning indicative maximum quotas for different types of renewable energy. It is clear that that the national cap should be at 1,500-2,000 MW for all, not more," he said.

The quotas will add to the already tightened application rules for new projects and plans for banning renewable energy development on cropland.

According to Traikov, the country could add no more than 2,000 MW of solar, wind and hydro energy by 2020, without negative consequences for the power supply and energy prices.

Still, the minister is convinced that Bulgaria will meet its EU-imposed target to boost renewable power generation to 16% of the energy mix by 2020. Under the National Action Plan for meeting the target, the country has the capacity to generate around 4,500 ktoe of renewable energy by 2020, where biomass energy will contribute 36% and hydro 31%, with smaller contribution from wind with 7.5%.

By 2020, Bulgaria could have 2,549 MW of hydro power capacity that could provide 3,951 GWh of its gross renewable energy generation.

Solar capacity is seen at 303 MW, producing 454 GWh. Wind power capacity is expected to come in at 1,256 MW, generating 2,260 GWh, and biomass capacity is projected at 158 MW, enough to produce 871 GWh.

(EUR 1 = USD 0.744)

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