Bulgaria: Energy Law amendments

, SEE Energy News

According to the amendments, electricity transmission system operator ESO will secure the necessary reserves by concluding contracts for ancillary services on a market principle following an auction. The Bulgarian Parliament has passed amendments to the Energy Law aimed primarily to eliminate the need for cold reserve. Producers with a total installed capacity of between 500 kW and 1 MW will be able to sell the generated electricity on the free electricity market. As of 1July 2021, suppliers will not purchase electricity at preferential prices from producers of electricity from renewable energy sources, generated by facilities with a total installed capacity of between 500 kW and 1 MW. By 31 May 2021, producers will conclude with the Electricity System Security Fund a premium-compensation contract for the quantities of electricity produced by them within the amount of their determined net specific electricity production on the basis of which their preferential price has been set up. The premium is fixed annually by the Commission for Energy and Water Regulation (KEVR) by 30 June 30. Also, data about the standardized load profile (SLP) will be made available. Chairman of the Parliamentary energy committee Valentin Nikolov said that electricity distribution companies will be obliged to include SLP data in customers’ bills and based on that, electricity consumers may choose their suppliers. The scope of financing from the Electricity System Security Fund is broadened, said Nikolov, and it will be able to make the interest payments on companies’ loans for energy efficiency projects. Nikolov said that the Fund could spend 1-1.5 million euros a year on interest payments. However, businesses warn that this scheme might benefit mostly projects for energy efficiency retrofitting.