Bulgaria: AES TPP Galabovo could compete with NEK on electricity price in liberalized market

9. July 2015. / SEE Energy News

According to the US company AES, the owner of TPP Galabovo, their electricity production facilities could compete with state owned NEK in terms of electricity price in liberalized market.

The management of the U.S.-owned AES Galabovo TPP reported its financial results for 2014. The revenues of the power plant have dropped from 81MEUR in 2013 to 66MEUR last year, while the rate of return was about 9 percent, below the usual 10 percent for such an investment.

According to Olivier Marquette, CEO of AES Bulgaria, this makes the project “poor”, given the investment in the power plant amounts to about EUR 1.25 bn. AES Bulgaria has also built a cinder depot for the power plant.

Meanwhile the state-owned National Electricity Company (NEK) owes EUR 220 million and the period for the payment is June 30, 2015. A day earlier deputy-energy minister Nikolay Nikolov stated that a longer finalisation period for the agreements with AES Galabovo and Contour Global Maritsa East 3 settling NEK’s debts could be needed, until the end of July. Furthermore, the wind park near Kavarna on the Black Sea managed by AES has to collect EUR 21 million from NEK.

The management of the power plant commented that it could also successfully compete with the generating units of NEK in terms of electricity price 63.91EUR/MWh), under the condition that it is used at full capacity. The power plant, which is selling electricity under a PPA, could also work in the conditions of a liberalised market. , transmits Serbia-energy.eu

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