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Bulgaria Wind Energy Market. Continues to be locked

/21st February 2014, RENEWABLE MARKET WATCHTM/ Between 2009 and 2012, Bulgaria has become one of the fastest growing wind markets in SEE region with cumulative wind installed capacity of 674 MW by the end of 2012. Currently the feed-in tariff is fixed for 20 years for biomass and solar projects and 12 years for wind projects at the date of signing of PPA.

Between 2009 and 2012, Bulgaria has become one of the fastest growing wind markets in SEE region with cumulative wind installed capacity of 674 MW by the end of 2012. After negative changes in renewable energy law and political instability in Bulgaria from the beginning of 2013 only 7.1 MW new wind capacity was installed for 2013. Thus cumulative installed wind capacity in Bulgaria reached 681 MW at the end of 2013.

Electricity produced from wind power plants in Bulgaria is purchased depending on size and technology between € 53.76/MWh (BGN 105.16/MWh) and € 89.92/MWh (BGN 175.86/MWh) before the 20 % VAT. The preferential rates are guaranteed for 12 years (if the project is completed before 2015) and are fixed for the whole period. The RES law stipulates that the electricity distribution companies should (1) provide priority grid access to producers and (2) purchase all the electricity generated from wind power plants.

According to the progress report on the fulfillment of the energy obligations of Bulgaria to the EU Directive 2009/28/EO, prepared by the Bulgarian Ministry of Economy and Energy in December 2013, the consumption of electrical energy produced from RES at the end of 2012 reached approximately 16.4% of the gross consumption of electricity in the country, or approximately 6,407 GWh. This creates risk that the government may decide in some moment to stop grid connection and purchase of electricity from renewable sources (including wind ones), because the country has fulfilled its obligation with EU.

More information about Bulgarian wind power market you may read here: Bulgaria Wind Power Market: Outlook 2013 - 2018