Renewable energy update

Offtake prices have increased from 1 June, 2009 for hydro power plants using environmentally-friendly technology and where the river beds are not to be shifted during construction.

The increases were made by the State Energy and Water Regulatory Commission after analyzing the economics of certain pioneer hydropower projects under development in Bulgaria. Some of the new prices exceed 50% of the standard hydro tariff.

The Government is also considering creating new obligations for renewable energy producers in return for grid operators connecting them to the grid, to take effect from the start of 2010. For example, investors might be required to complete a project within a certain timeframe or invest in balancing power stations.

Other changes being considered include a new cost-sharing mechanism and upper limits on renewables being connected to the transmission and distribution grids at the request of producers.

Measures to implement a green certificate system are still pending: the Minister of Economy and Energy has until 31 December 2011 to produce draft legislation providing market mechanisms and incentives to encourage renewable energy production.

Law: Resolutions of the State Energy and Water Regulatory Commission dated 12 May 2009