News & Analysis

One of the Bulgarian government’s main goals is to increase the awareness of forest owners and energy producers regarding forest biomass’s potential use as a diverse and economical renewable resource. Another point is to raise awareness of animal and agricultural farmers regarding possibilities to utilize residues from their activity through biogas installations. To promote energy production based on forest biomass and to ensure economic management of forests, it is important to have accurate information about the existing resource and the energy production enterprises using, or planning to use, these fuels. It is necessary to develop optimum logistics models.

The development of the biomass and biogas electricity market in Bulgaria by the end of 2012 has been insignificant. Installed cumulative capacity grew from 1.1 MWel in December 2011, to 18 MWel at the end of 2012. Electricity produced from biomass installations depending on biomass source type is purchased at a minimum €93.49/MWh (BGN 182.86/MWh) and a maximum €238.15/MWh (BGN 472.43/MWh) before the 20 % VAT. The preferential rates for biomass are guaranteed for 20 years (if the project is completed before 2015) and are fixed for the whole period.

According to Bulgaria Biomass Market: Outlook 2013 – 2018, In the short 2 years term, Bulgaria will be one of the lucrative destinations for biomass investments in the CEE region due to its feed-in tariff program which guarantees preferential rates for the sale of power produced by biomass installations for 20 years. At the moment, the political crisis in Bulgaria creates some concerns, which should be overcome on parliamentary elections on 12 May 2013. There is good potential for utilizing biomass as an energy source in Bulgaria.  While information regarding the use and potential of biomass has been limited, there have been recent developments through pilot projects and preliminary evaluations that begin to highlight Bulgaria’s full potential.  In June 2008 the Council of Ministers approved a National Long-term Programme for Encouragement of the Use of Biomass for 2008-2020.  This program is a roadmap for the potential use of biomass in Bulgaria.

In Bulgaria, the biggest potential for biogas production from primary and secondary agricultural residues is available in the regions North Eastern and South Central. Regarding solid waste and wastewaters, the biggest potential for biogas production is in the South-Western part of the country where population density is higher. More information about this promising market you may read here: Bulgaria Biomass Market: Outlook 2013 – 2018