Bulgaria to set new prices for biomass energy in 2 weeks - report

(ADPnews) - Sep 15, 2010 - In two weeks, the Bulgarian State Energy and Water Regulatory Commission (SWERC) will set new prices for power generated by biomass-fueled plants with capacity higher than 5 MW, Bulgarian daily Dnevnik wrote on Tuesday.

By law biomass power producers sell power at high, preferential prices, but domestic sector players asked for the commission to review prices and take into account higher investment costs. Currently, the price of energy from biomass plants with capacity of less than 5 MW is between BGN 165 (USD 110/EUR 84.4) to BGN 198 per MWh. Under recent proposals generators with higher capacity will sell their energy output at BGN 207.6 per MWh.

According to SWERC, costs per kW of renewable energy amount to some EUR 1,600, while the figure is at least EUR 3,000 according to the Bulgarian-Portuguese company Mape Development, which plans to build power plants that use wood pulp from sanitary felling in central Bulgaria. Another sector firm, Bul Eco Energy Ltd, said that the costs per kW for a 10-MW biomass project arrive at EUR 2,700, excluding property, logistics and other expenses.

Biomass projects in Bulgaria are not at all popular, while there is 1,700 MW of installed capacity in eastern Europe. On September 27, SWERC will hold a meeting to set the final price. Its head, Angel Semerdzhiev, advised local companies to focus on combined generation of heat and electricity, so that the preferential prices are lower and more affordable for clients.

(BGN 1 = USD 0.664/EUR 0.511)

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