A tax of 25.000 euro per MW will limit the speculative RES boom in Bulgaria

In response to previous criticisms that suggested some amendments might hinder rather than promote the development of renewable energy sources (RES) in Bulgaria, recent revisions to the Law on Renewable Sources seek to address these concerns. These changes are slated for discussion in the second reading next week, while the first reading will primarily focus on key modifications to the Energy Act.

One notable adjustment removes the “zoning” requirement in RES projects, with the exception of wind farms. During a round table discussion titled “Roadmap for Climate Neutrality by 2050: Energy and Climate Security,” organized by the Center for the Study of Democracy (CID), Delyan Dobrev, the chairman of the energy commission, announced this change. It’s worth noting that the final texts under consideration in the National Assembly differ significantly from the initial proposals put forth by the Council of Ministers.

Another critical amendment addresses the surging photovoltaic (PV) construction sector, which has led to grid congestion due to an influx of speculative projects, thus hindering genuine projects from connecting. To tackle this issue, the RES Law suggests that each investor should provide a guarantee of Euro 25.000 per 1 MWh of capacity. This guarantee exclusively applies to projects that have not yet reached the preliminary contract phase with the Electricity System Operator (ESO). Currently, ESO has received requests for a total capacity of 40,000 MW, surpassing the network’s capacity. Concerns have arisen that many of these projects are speculative and intended solely for resale to other investors, resulting in capacity reservations that remain unused for extended periods. This measure draws parallels with a similar step taken in 2012 during a previous RES boom to curb speculative projects.

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