Renewable energy in Bulgaria.

From promising market to arrested development?

M.A. Nikola GazdovBulgarian Photovoltaic Association

Chairman

www.bpva.org20-21. June 2011, Sofia

2/6/10

Main topics

RES in Bulgaria – reality vs. mythology

New RES act – solution or problem

What next – ‚Energiewende‘ or ‚arrested development‘?

About BPVA

Bulgarian Photovoltaic Association (BPVA) ● 120 local and global companies● BG, DE, AUT, DK, USA, JAP, IRL, GR, IT, POR, FR, SP, CZ, UK, BL● Active membership at EPIA

Goal of BPVA: Sustainable business environment

- clear rules - transparency- less barriers- predictability

= CONFIDENCE

RES/PV in Bulgaria

General information & potential

RES & PV in Bulgaria – general information

State support for Renewables in BG:

● EU goals (20/20/20) and obligations (16% RES; Directive 200/28/EC)

● ‚Green Bulgaria‘ – GERB political programm; Vice PM Dyankov

● RES act - obligatory interconnection & feed-in tariffs (FiT)

 

PV market in 2009 and 2010

● Applications for PV plants – around 4000 MWp.

- Only up to 10% of those projects are regarded as ‘real’- Fears of ‘overheating’ that would cause soaring of electricity

bills- Negative image (Green mafia, ‘Abzocker’)

● Installed capacity ~ 7 MWp (2009); ~ 15 MWp (2010)

● Currently total installed capacity ~ 30 MWp (June 2011)

2/6/10

PV – constructed and interconnected

Dynamics of installed capacity (MWp)

PV regulationBefore new RES act adopted in April 2011

Financial- FiT not fixed – projects hardly bankable

Administrative barriers- long waiting times (rooftop installations)- general uncertainty (pending new RES act since late 2009)

Speculators and grid access- too many speculators and a secondary market for ‚projects‘- virtual lack of grid capacity

PV regulation – problems and chances

Political uncertainty

● Moratorium talks in December 2009 – Ministry of Environment

● Former Head of NEK – no grid access for RES until July 2011

● Ban on all RES on agricultural land (2010) - adopted in Mai 2011 for solar only (discriminaton)

● PM B. Borisov: RES will make electricity price 18 times higher

New RES act in April 2011

Delayed - announced in 2009 and finished in 2011

Intransparent - over 20 different drafts,; working group‘s positions disregarded- re-drafting & last minute re-voting in Parliament

Unclear rules - max.yearly capacities for new projects; unclear grid connection

Unpredictable - RES act amended just 1 day after adoption (ban for PV)What financial support after 01. july 2011?RES act violated by state institution (DKEVR)Possible future restrictions feared

= CONFIDENCE DEFICIT FOR BG

What development for RES in BG?

1) < ……………………… >

2) < ……………………… >

3) < ……………………… >

‘There is one thing stronger than all the armies in the world - an idea whose time has come.’

Victor Hugo

Thank you

for your attention!

M.A. Nikola Gazdov

Chairman

office@bpva.org

www.bpva.org

20-21. June 2011, Sofia