Bulgaria to freeze construction projects for solar parks and wind-powered generators until 2020 Bulgaria will not develop projects for the utilisation of expensive renewable energy until 2020, stated Prime Minister Boyko Borissov at an official lunch with the American Chamber of Commerce yesterday. Nothing forces us to harness our entire power generation capacity because the cheap energy generated by the NPP Kozloduy is beyond any competition due to its low price. This sector has been tolerated for a long time at the expense of other economic sectors. Invest in sectors which are profitable for Bulgaria, recommended the Prime Minister to the representatives of US companies attending the official meeting. According to him, it is unfair to Bulgarian citizens, who are the most impoverished in Europe, to be drained financially because the consumption of the more costly renewable energy is too expensive for them. We can invest in the use of biomass for power generation, as well as in the construction of hydropower plants, but not in solar parks and wind-powered generators, specified Borissov. He cited the data of 2011, which showed that Bulgaria is the only EU member-state which has increased its biomass production. Consequently, this "mixed energy" will be consumed by the end user and the final price might become too high if the balance of our energy system is disturbed, explained the PM. I will deliver not so delicate an appeal, compared to that of the Energy Minister, Traicho Traikov: "Stop pressing the Bulgarian ministers on resolving this issue," said the PM. I will agree to the budget allocation of BGN 1,000 should the Bulgarian companies and citizens improve their energy efficiency policy by investing in such renewable power sources and residual energy and transferring the latter to the energy network for general consumption. I am unable any longer to protect the airports from the construction of solar parks, complained he. Even during his visits to the towns of Silistra and Targovishte, he discovered that the town mayors have adjusted the airport infrastructure for the operation of solar parks.
Source: Class (13.01.2012)

The replacement of power cables and electricity polls could be financed with money from the EU funds, EVN’s BD chairman Jorg Sollfelner said. That, however, could not be the case before 2014, as there were no EU programmes providing money for such activities in the country at the moment, Sollfelner explained. The idea would be discussed with representatives of CEZ, NEK and the state. According to CEZ, using EU funds for system upgrades would keep electricity prices down.
Source: Standart (13.01.2012)

About 15 thousand companies in southeastern Bulgaria, using medium voltage electricity will have to leave the protected quota of consumers who pay bills for electricity at regulated prices. They, however, can choose between whether to completely enter the free market, where to buy electricity from merchants or benefit from an intermediate position in which they will purchase electricity at regulated prices again, but higher than those for households. These amendments are provided at the Energy Act, which has been submitted for approval at the Council of Ministers and is expected to be adopted on Wednesday, then will go for discussion in parliament. According to deputy chairman of the board of EVN Bulgaria Elektrorazpredelenie, Gocho Chemshirov, this change will affect about 1% of our clients, serving a total of 1.5 million users, representing 20% of the electricity sales of the company.
Source: Capital (16.01.2012)

SEWRC threatens with a 10% increase in electricity prices in case of a long strike of miners “If the strike of the miners at the Maritsa Iztok Mines continues for more than a month, this will lead to at least 10% increase in electricity prices as of July 1, 2012,” Angel Semerdjev, Chairman of the State Energy and Water Regulatory Commission (SEWRC), warned today. According to him, thermoelectric power plants have coal reserves for two or three weeks and afterwards, they will have to slow down the speed of their operation, stop work or supply coal from other mines. In order to avoid electricity problems, the cold reserve of Varna TPP and Bobov Dol TPP will be used, but electricity from these plants is considerably more expensive. This will increase the costs of the National Electric Company (NEK) for purchase of electricity and will raise consumer electricity bills as of July. NEK has already demanded some 4.5% hike of electricity prices before July 1. The reason is the company bears losses from the purchase of electricity from renewable energy sources. “If the miners’ strike lasts less than a week or two, prices may remain unchanged,” stated Semerdjiev. In case of a longer strike, it would be difficult for the entire system of electricity generation to go back to its usual rhythm. In addition to the strike, the price increase of electricity as of July will be due to the purchase of larger quantities of green energy and the launch of trade in harmful emissions from TPPs. Thus, consumers may have to pay 15% higher electricity bills as of the middle of 2012. Semerdjiev refused to specify the preliminary estimates of the price hike based on all factors. However, he explained that the electricity market in the region was developing in the direction of increasing prices which means higher proceeds from the export of electricity.
Source: Class (18.01.2012)

Chinese consortium Wind Energy has bought the right to build on 2000 decares of agricultural land near General Toshevo. The information was confirmed by the Mayor Dimitar Mihaylov, who explained that the price of the deal is over BGN 60 million. The investment plan of the Chinese company is to build a large wind farm with 150 wind turbines. Despite the temporary obstacles on renewable energy projects, this park will be built. Due to the large transaction the municipal treasury of General Toshevo received over BGN 1, 9 million. The mayor added that the Chinese investor already had a permit to link to power grid of NEK.
Source: Monitor (18.01.2012)

If protests of miners continue, NEK will buy up to 50% more expensive electricity “If the strike at the Maritsa Iztok Mines continues for a longer period of time, the power stations which sell more expensive electricity will start operating and this will ultimately affect consumer bills,” Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC), explained on BNT. According to him, if power plants’ stocks of coal are exhausted, electricity from Varna TPP and Bobov Dol TPP must be purchased, which is some 40-50% more expensive, and this will inevitably affect the costs of the National Electric Company (NEK) as a public supplier of electricity. SEWRC, on its part, is obliged to reimburse the companies’ expenses, which means that consumers' electricity bills will inevitably increase. The management of the Maritsa Iztok Mines said that the losses from the strike have reached BGN 4 mln. Maritsa Iztok 2 TPP has begun a trial supply of coal from mines in the region of Pernik. Another reason for the more expensive electricity as of July 2012 will be the launch of trade in quotas of harmful CO2 emissions from TPPs. “The effect of this factor on the end price of electricity can be mitigated, if Bulgaria’s request for a grace period in which our TPPs will prepare for the changes, is accepted,” explained Semerdjiev. Currently, CO2 emission quotas are cheaper and, if they remain at their present levels, the effect on bills will be lower. However, Semerdjiev expressed optimism that the price hike of electricity for consumers as of July might remain within a 7-8% range. “The price of electricity in Bulgaria is still some 35% lower than the EU average,” added Semerdjiev.
Source: Class (19.01.2012)

Citigroup applies for a licence for electricity trading in Bulgaria The U.S. company Citigroup wants to start electricity trading in Bulgaria, it became clear from a report of the State Energy and Water Regulatory Commission (SEWRC), to be discussed at a meeting of the regulator tomorrow. Its subsidiary - Citigroup Global Markets - has applied for a 35-year license (the maximum license period) for electricity trading. This will allow the new player on the free market to gain experience, and plan its activities and volumes of energy to be traded in the long term. As a result, the competitive environment will improve and there will be more benefits for both the other market participants and the Bulgarian consumers, states Citigroup. The company is registered in London and has a capital of $1.9 bn. SEWRC’s report says that the company has 260,000 employees in more than 100 countries. Citigroup Global Markets has over 45 years of experience on European energy markets. It trades electricity, greenhouse gas quotas, coal, agricultural goods and investment products. Over the last two years, the company signed agreements for electricity trading with 250 new clients. The company has already submitted the required guarantees to SEWRC and has opened a current account with at least BGN 150,000 in the Sofia branch of Citibank. The company will sell electricity in Bulgaria and in the region from its office in London. Four experts experienced in working with the energy markets in the U.S. and Europe will be sent to Bulgaria. The company has been profitable over the last two years and its financial state is good, says SEWRC. Citigroup Global Markets plans to gradually increase its sales of electricity in Bulgaria until 2016, as well as its profit. Citigroup is yet another company that wants to sell electricity in our country and in the region. Industry giants including E. ON, GDF Suez, Gazprom Marketing & Trading, CEZ, EVN, ABB, NEK and a number of regional companies are already operating on the domestic market. The active traders on the free market are about 35 at present. In 2012, all users of medium voltage electricity are expected to go out of the regulated market.
Source: Class (23.01.2012)

Power Prices to Rise Slightly in 2012 The Head of the State Commission for Energy and Water Regulation, DKEVR, Atanas Semerdzhiev, informed Tuesday that there will be a definite price increase, but no more than 7%-8%, effective July 1, 2012. Semerdzhiev, however, stressed that Bulgaria is an island of cheap electric power compared to other countries in the region, something that cannot last forever. "It will be clear very soon how the strike at the State-owned Maritsa Iztok mines will affect the sectors that count on their coal and the price of electric power. The report will be ready in a week," he said, adding that losses are unavoidable, but because of the relatively short strike, its influence on electricity prices would be minimal. Semerdzhiev reminded that a new Thermal Power Plant, TPP, AES Galabovo, opened doors in August 2011, but also that it produces more expensive power. According to the DKEVR Head, the quantity of purchased "green energy" also influences electric power prices.
Source: Standart (25.01.2012)

Electricity consumption up by 20% due to the cold weatherElectricity consumption increased by almost 20% due to the extremely cold weather, the Electricity System Operator (ESO) reported today. Consumption varies between 5200 MW and 7000 MW in the different hours and according to the Operator’s forecasts for tonight, it will even exceed 7000 MW. In order to meet the domestic demand, the ESO switched on the three cold reserve units of the Varna TPP, as well as the big hydroelectric power plants, owned by the National Electric Company. Electricity consumption increased by almost 400 MW in a single day due to the cold weather. According to the company forecasts, in the first days of February the consumption of electricity will exceed 7100 MW at peak hours and the highest consumption will be registered on the evening of February 2 - 7203 MW. There are no problems with the power lines at present and the export of electricity continues, added ESO. Bulgaria exports about 900 MW to Serbia, Macedonia, Greece and Turkey, the largest amounts going to Skopje and Ankara. At the same time, Romania transits between 260 and 560 MW of electricity via our electricity grid according to a schedule.
Source: Class (31.01.2012)

Consultative Board to monitor the development of the energy market A Consultative Board for the free energy market in the country will be established. This became clear after a working meeting at the Ministry of Economy, Energy and Tourism with the participation of Economy Minister Traicho Traikov and representatives of the Confederation of Independent Trade Unions in Bulgaria (CITUB) and two employer organisations – the Bulgarian Industrial Association (BIA) and the Confederation of Employers and Industrialists in Bulgaria (CEIB). The Board will start work next week. “I promised that a Consultative Board will be set up in order to guarantee the interests and competitiveness of the Bulgarian industry. They should not contravene the requirements of the free market so that our country does not become subject to punitive procedures,” said Minister Traikov. “The claims on the part of certain industrial companies are connected with power plants which organise tenders for the sale of electricity, no matter whether it is intended for the domestic or the foreign market. Theoretically, tenders in a free market should not be a problem since it should not matter whether the electricity is for domestic use or for export when the market is free,” explained Traikov. “We discussed a pact on industrial stability, similar to the Financial Stability Pact. It’s no less important for us to have a pact on industrial stability,” said Traikov. We have a market and market participants. For me, in my capacity of principal of the Kozloduy NPP and the Maritsa-Iztok 2 TPP, it is important that the rules are fair and achieve the best possible prices because the money of Bulgarian taxpayers is spent on these power plants. In this particular case, some industrial consumers have claims on the power plants,” commented Traikov. BIA’s Executive Chairman, Bozhidar Danev said that his organisation had proposed that the price on the regulated market of electricity should change in accordance with the price on the free market. The Consultative Board will include representatives of businesses - large consumers of electricity, power plants generating electricity for the domestic market, syndicates, the executive power and MPs,” said Nikolay Nenkov from CITUB.
Source: Class (01.02.2012)

Bulgaria stops exports of electricity Bulgaria stopped exporting electricity for the second time this year. The ban on exports was enforced in the early hours today by an order of Minister of Economy, Energy and Tourism Traicho Traikov and will be in force for an unlimited period of time. The new ban on exports is due to the extremely cold weather spell in Bulgaria, resulting in a record-high increase in consumption. Another reason is Maritsa Iztok Mines’ difficulties to supply coal in the region because of the flooding in its pits. The company is operating in emergency mode now and delivers solid fuel to the thermoelectric power plants. The ban on the export of electricity came into force at 1 a.m. today and will last until TPPs replenish their coal reserves, explained the Electricity System Operator (ESO). Until now, Bulgaria was exporting about 900 MW of electricity, mainly to Serbia, Macedonia and Turkey. Another reason for the suspended exports is the breakdown at AES Galabovo TPP, specified ESO. The entire cold reserve of the country is currently in use in order to ensure consumption. Last week, consumption at peak hours stood at around 7,200 MW and no changes in this respect are expected in the coming days. “The price of electricity for end users will increase by no more than 5% because of the switch to new green power plants,” said yesterday Anton Ivanov, an expert from the Bulgarian Energy Forum (BEF). He said that such an increase cannot result in electricity price increase of over 10%, as experts from the energy regulator explained. “New 500 MW capacities from wind and photovoltaic plants are expected to be put into operation by the middle of the year,” said Ivan Hinovski Chairman of BEF. Deadlines for connection in the period 2017-2020 will be set up, with the amendments to Renewable and Alternative Energy Sources Act, for other projects that have preliminary contracts for switching to the grid.
Source: Class (10.02.2012)

Economic Minister Traikov: We have to decommission dams because of their poor technical condition About one-third of the smaller Bulgarian dams have exhaust valves which are choked, filled with concrete or obstructed in another manner, stated yesterday in the Pamporovo resort, Minister of Economy, Energy and Tourism, Traicho Traikov. He predicted that it will probably be necessary for part of these dams to be decommissioned. The large dams collecting 55% of the water from the regulated water volume in our country are well-managed, said the Minister. In his opinion, the problems concern the remaining 45%, i.e. smaller dams. About one-third of the more than 2,000 Bulgarian dams are actually in good condition, reckoned Traikov. An MEET inquiry provided by the district governors shows that the potentially dangerous facilities in our country number 500-600. These are already being inspected. In all 28 districts, special teams have been formed with experts from NEK EAD Dams and Cascades, Hydroelectroinvest and ESO. If necessary, they will issue stipulations on the spot for the application of necessary measures ensuring the safe operation of the dams. In parallel with on-the-spot inspections, currently, an inter-agency working group of lawyers from different ministries is clarifying the need for legal amendments, which will guarantee the safe operation of the dams. The crisis headquarters for dealing with disasters in Bulgaria has not been disbanded, stated on the Sunday 150 radio show, Interior Minister Tsvetan Tsvetanov. According to him, the big problem to be solved is finding opportunities for the controlled release of water from the dams. Some BGN 5 mln are necessary for prevention and risk assessment of hazardous small dams. According to expert estimates, around 500 of these, which could jeopardise the lives of nearly 700, 000 people, are potentially hazardous, stated Professor Dimitar Toshev, Head of the Faculty of Hydraulic Engineering at the University of Architecture, Civil Engineering and Geodesy. According to him, the idea to demolish the dams is wrong. The irrigation system must be restored; dams must not be destroyed. They need proper maintenance, added the expert.
Source: Class (13.02.2012)

Municipalities and state-owned companies to be granted ˆ110 mln for energy efficiency “The International Fund Kozloduy will allocate ˆ110 mln for the improvement of the energy efficiency in Bulgaria,” said Minister of Economy, Energy and Tourism Traicho Traikov. Most of the funds - ˆ61.5 mln - will go to state-run energy companies: the National Electric Company (NEK), the Electricity System Operator (ESO), the Maritsa Iztok Mines, Bulgartransgaz and the municipal Central Heating Utility in Sofia. The funds will be spent on rehabilitation and replacement of energy capacities and on improvement of the electricity distribution network. The remaining ˆ48.5 mln will be invested in energy efficiency projects, for which municipalities will apply. The money will mainly be spent for renovation of municipal and state-owned buildings and for installation of street lighting in urban areas. Minister Traikov explained that the municipalities could apply for financing until the end of March. Depending on the specific project, the grant aid will cover half of its costs or the entire undertaking. Municipalities have submitted projects worth almost BGN 1 bn so far but not all of these can be supported by the Fund. If unabsorbed money remains, applications will be accepted during the next stage, until August 31. The Minister urged the local governments to hurry with their applications because the financial resource is likely to be exhausted after the first stage. “The Fund has earmarked another ˆ10 mln to subsidise households that want to install gas supply to their homes”, added Traikov. About BGN 3,000 per household will be allocated on average. This programme is expected to be launched at the end of June, 2012 at the earliest. “The construction of gas heating installations at people's homes will be financed”, explained Deputy Minister Delyan Dobrev. So far, the Government has not projected any funds to support the use of electric cars.
Source: Class (16.02.2012)

Money from the Disaster Fund to be allocated for reinforcing of dams “Money form the Disaster Fund will be allocated for reinforcing and repairing dams that may pose problems”, Minister of Economy, Energy and Tourism Traicho Traikov said today. According to him, the money from the Fund will be used as a buffer only in extreme cases. The Fund is under the umbrella of the Interior Ministry and only a small amount of its resources will be spent. Traikov added that 11 out of the 140 inspected dams have serious problems. Many dams have no spillways and their overflow outlets are out of order. “These dams are in the municipalities of Montana, Pazardzhik, Sliven and Smolyan,” specified Mihail Andonov, Head of the National Electric Company (NEK). NEK will immediately hire experts from Energoproject Hydropower and the University of Architecture, Construction and Geodesy to discuss the measures needed for reinforcing the dams. “The recommendations will be given to the concessionaires of the dams”, explained the Minister.
Source: Class (16.02.2012)

NEK demands at least a 6% higher electricity price “The National Electricity Company (NEK) will demand that the State Energy and Water Regulatory Commission (SEWRC) increase the electricity wholesale price by at least 6%,” told Klassa daily the company’s Executive Director Michail Andonov. According to him, this step is needed because of the more expensive electricity produced by Thermoelectric Power Plants (TPPs) and Renewable Energy Sources purchased by the public service provider . Because of the cold weather, the company is currently buying large amounts of electricity from TPPs at a price which is several times higher than the price of electricity from the Kozloduy Nuclear Power Plant (NPP). Andonov added that electricity consumption in the country increased by about 20%, due to the low temperatures. The cold reserve of the country was included in the system recently, which further increased the price of electricity bought by NEK. The company’s internal reserves are insignificant because of the cancelled exports of electricity. NEK's highest revenues come from the export of electricity. In this way, it manages to cover the losses from the sale of electricity on the regulated market. The documents for the requested increase will be submitted to the energy regulator, despite the fact that SEWRC experts explained they will not accept any increase in the wholesale electricity price before July 1. If the demand of NEK is approved, there is no way for the price increase for end users to be kept at 7-8% as of the middle of the year, as planned by SEWRC. “NEK has reached an agreement with French BNP Paribas on rescheduling the loan of ˆ250 mln, borrowed for the construction of the Belene NPP. A draft document has already been sent to the Bulgarian Energy Holding and SEWRC for consideration. The payment will be deferred for one year,” said Andonov.
Source: Class (17.02.2012)

Four companies want to consult the ESO separation from NEK Four companies have submitted bids and indicated the price and conditions under which they would consult the Bulgarian Energy Holding (BEH) for separation of Electricity System Operator from the National Electricity Company (NEK), Deputy Minister of Economy and Energy Delyan Dobrev said. The deadline for submission of expired on 10 February. Nine companies declared Interest in the proceedings. Dobrev, who is chairman of the board of directors of BEH, declined to give details. Bids evaluation will be delayed by a week and will be ready in March. Consultant will negotiate with creditor banks on restructuring of NEK loans. This calls for because ESO will be separated along with the grid that serves as collateral on loans. NEK negotiates with BNP Paribas for rescheduling by year the allocated 250 million euro for preparation of the project for construction of NPP Belene, Dobrev said. The maturity is in May. After choosing of consultant, it will participate in negotiations. "Project" Belene "and 3 million BGN a day are ticking because of commitments taken under the project," said Minister of Economy and Energy Traicho Traikov on the occasion of allegations of MP "Coalition for Bulgaria" and former Energy Minister Rumen Ovcharov for delaying the decision and stopping its construction.
Source: 3e-news (17.02.2012)

Exports of electricity to be restored on Tuesday Exports of electricity will be restored in the early hours of tomorrow, told BNR Mihail Andonov Executive Director of the National Electricity Company (NEK). He explained that, on Friday, an order was issued by the Minister of Economy, Energy and Tourism Traicho Traikov that exports should be resumed. Andonov said that all electricity retailers were aware of the change. This is possible after the Maritza East Mines restored the reserves of coal of the Thermoelectric Power Plants (TPPs) in the region. This was the second ban on exports of electricity this month. The first time, exports were stopped because of the strike of the workers from the Maritza East Mines. The current ban was introduced due to the high consumption in the country in the extremely cold weather. Another reason was that the mines were not able to deliver coal to the TPPs because of flooding there. In recent days, the load of the energy system will not exceed 6,700 MW, which is normal for consumption in the winter months. Experts from the Electricity System Operator (ESO) do not expect the consumption of electricity to exceed 6,530 MW in the coming days. ESO has no data about the amounts of electricity transferred through the country in the last 3 days. According to the data from February 16, between 457 MW and 656 MW of electricity were transferred through our territory at different times of the day, and these quantities came from Romania. Exports were mainly to Serbia and Macedonia, and smaller amounts of electricity were transferred to Greece and Turkey. NEK suffered damages due to the cancelled exports of electricity because the company manages to cover its loss from the sale of electricity on the regulated market with the proceeds from exports.
Source: Class (20.02.2012)

Bulgaria Starts Export of Power again Bulgaria has started anew the export of power to its neighbouring countries. With an order of Bulgaria's Minister of Economy and Energy, Traycho Traykov as of 01:00 a.m. this night Bulgaria started the export of power. This became possible after the temperatures went up and the Bulgarians decreased the consumption of power. The export of power was suspended for a second time this year on February 10 due to the severe colds which hit Bulgaria and the record-breaking consumption which led to a power shortage of 400 megawatts/hours.
Source: Standart (21.02.2012)

Varna TPP to trade with carbon emissions “The Varna Thermoelectric Power Plat will participate in the trading with carbon allowances together with other TPPs and a closure of the company cannot be expected,” said Executive Director Kamen Boshnakov, quoted by Radio Focus. “As of 2013, all TPPs in the EU will have to buy carbon allowances, in order to continue operating. The plant has made its investment proposals, which should be included in the National Plan for 2013 – 2020. This plan will ensure cost- free allowances for the company, but theVarna TPP will be obliged to invest in installations reducing carbon dioxide emissions,” said Boshnakov. The plant is expected to get about 4 mln tons cost-free allowances for the period 2013 - 2015. "Payments of carbon allowances will inevitably affect the price of electricity. This refers not only to the Varna TPP but to all other Thermoelectric Power Plants," he said. “In the period October - late January, the cold reserve has been activated three times because of the bad weather, reduced production of the Hydroelectric Power Plants and the strike at the Maritsa - Iztok Mines,” recalled Boshnakov. The Varna TPP operates three blocks from the cold reserve and provides about 60% of the foreseen quantities in Bulgaria. We are currently in negotiations with the National Electricity Company on the new contract for the cold reserve. Currently, theVarna TPP operates on high calorie coal, imported from the Ukraine and Russia, but despite this fact, the construction of Flue-Gas Desulfurization (FGD) plants and installations reducing nitrogen oxides will be imperative.
Source: Class (21.02.2012)

Another 25 Bulgarian dams to be inspected Another 25 dams will be inspected by experts after the submission of alarming signals to the Ministry of Economy, Energy and Tourism (MEET) by mayors and district governors who explicitly expressed their wish for the water basins to be inspected. At the moment, there is an ongoing inspection carried out by NEK EAD Dams and Cascades, Hydroelectroinvest and NEK of the initially declared 600 dams. Expert teams have detected violations and have issued regulations for improving the security of water facilities. The requirements include the removal of the fence netting from the spillways, as well as their cleaning from vegetation, dismantling of the additionally mounted barrier components, elimination of fish cages placed in the immediate vicinity of the spillways, as well as the refurbishment and opening of the main outlets along with filling the wall cracks with concrete, including the reduction of the water volumes, as well as other activities. According to MEET data, some of the dangerous dams are of unestablished ownership. At the BTA (Bulgarian Telegraph Agency) press conference, experts on the hydro-technical facilities announced that the wall of one of the nine largest reservoirs - Beli Iskar Dam is in a deplorable condition. As a result, imminent emergency repairs are needed to secure the facility. According to preliminary estimates, their cost will reach BGN 7.5 mln. Besides, temperatures in Bulgaria and Romania are expected to increase by 8 - 10 degrees over the next 10 days and this will result in the melting and breaking of the ice on the Danube River, warned also the UN Office for Disaster Risk Reduction (UNISDR), announced the Swiss website expatica.com, quoted by BTA.
Source: Class (22.02.2012)

Some 12 dams in the country are potentially dangerous“ Out of the 607 inspected dams in the country, 12 are potentially dangerous,” stated Minister of Economy, Energy and Tourism Traicho Traikov. The inspection was carried out by the enterprises Dams and Cascades, HPP, and Hydroelectroinvest which are part of the National Electricity Company. Release of at least 50% of the water volume, or complete emptying of the basins, cleaning spillways, securing gutters and unblocking flood gates are among the most commonly recommended safety measures. “The recommendations are prescribed regardless of whether the dams are owned by the Irrigation Systems company or by the municipalities,” Traikov said, and added that the implementation of the measures is controlled. Regarding the Beli Iskar dam, for which a signal was submitted that it could produce a 10 m wave-tsunami, Traikov said that the dam was not dangerous. It was rehabilitated in 2002. According to the Minister, there will be a real danger only if this water facility overflows while there is an earthquake of over 6.7 on the Richter scale. Currently, the Beli Iskar dam is 15 meters below its maximum level. “The initial list of inspected facilities included 562 dams, but in the course of the inspection another 45 were identified,” said Traikov, adding that out of the 607 dams, 70 are managed by the Irrigation Systems company.
Source: Class (23.02.2012)

Bulgaria to Liberalize Energy Market "With the adoption of the amendments to the Energy Act, Bulgaria will correspond to the European directives for liberalization of the gas and energy and power market," stated Bulgaria's Deputy Minister of Economy and Energy Delyan Dobrev in line with EC warning that Bulgaria fails to observes the rules of the EC and may be sanctioned. "The reason for the critics is that the National Electric Company (NEC) has not been separated from the Electricity System Operator (ESO)," Mr Dobrev stated. A contract with the consultant on the separation of the two companies could be signed within a month. The term for the separation is 9 months. In the first 3 months the consultant will make analysis on then best way to separate the companies and how to restructure the assets and arrears to NEC. The second three months are for the real separation of the companies and the last three months are for the clearing the remarks," Mr Dobrev added.
Source: Standart (29.02.2012)

CEZ, E.On and EVN requested tariffs to be raised by 3.6% to 9.1%. Electricity distribution company in northeastern Bulgaria E.On asked night-time tariffs to be doubled – from BGN 0.002 per KWh to BGN 0.004. The company also requested 3.8% for day-time tariffs, VAT not included. EVN also suggested larger uptake for the night-time tariff. According to the company’s calculations night-time prices should be raised by 4.2%, day-time tariff should be raised by 3.6%. Electricity distribution company in Northwestern Bulgaria CEZ proposed average uptake of 7%. But the uptake that will be approved by the SEWRC regulatory body could be even higher because of the growing prices of green energy.
Source: Standart (01.03.2012)

Bulgarian households spend more than 10% of their incomes on electricity bills Bulgarian households spend more than 10% of their incomes on electricity bills, which means that they have deficiency of power and the country’s economy is very energy intensive, said a report of the Regional Policy Department with the European Commission on Bulgaria’s progress in the field of renewable energy sources (RES) and energy efficiency in buildings, drafted by experts from the Center for the Study of Democracy. Therefore, any future price increase of electricity (including such connected with the use of renewable energy and achievement of the 16% RES target) should be matched with support for vulnerable consumers. Not all buildings can be included in the currently existing support schemes. Moreover, a necessary prerequisite for participation in an energy efficiency scheme is the condominium associations to achieve a 100% agreement between the owners of flats which is not easily achievable, the report noted. The support for energy efficiency in buildings is very limited. At the time of drafting the report (the middle of 2011) no actual payment under these schemes was effected. Energy efficiency costs (e.g. for insulation) are too high to be borne by the average household in Bulgaria and this calls for greater participation on the part of the State. The economic crisis had a strong negative impact on the regional development in Bulgaria and on potential beneficiaries, the report said. The data shows increased disparities between various regions in the country.
Source: Class (01.03.2012)

NEK demands more than three-fold higher surcharge for green energy The National Electricity Company (NEK) demanded an over three-fold increase in the surcharge for green energy in electricity bills as of July 2012. NEK also asked the State Energy and Water Regulatory Commission (SEWRC) to raise the price which electricity distribution companies pay from the current BGN 3.72/MWh to BGN 12.35/MWh. The reason for the requested shocking price hike is that NEK will have to buy more green energy from producers. This is due to the increased generation of electricity from renewable sources in the total energy balance, NEK said. According to the company, the electricity produced by the new photovoltaic energy parks is considerably more expensive than that from other renewable sources. However, NEK owns 31 hydroelectric power plants and all the state preferences for green energy are valid for their prices. NEK also demanded a price hike for the electricity sold to the power utilities of 8.5% up to BGN 0.081/KWh as of July. The reason for the requested increase is that NEK buys large quantities of expensive electricity from the cogeneration units of central heating companies. The demanded higher prices are due not only to the green energy and central heating companies, but also to the inflation and the forecast for increased electricity demand. The price for supply of electricity will remain unchanged at BGN 0.00132 /KWh. The power utilities CEZ, E.ON and EVN have already asked for a price increase of between 3% and 9% as of July 3. Only electricity producers have not specified any price increase yet. However, SEWRC’s Chairman Angel Semerdjiev stated last week that he would not allow the prices of electricity for households to increase by more than 3.5%. “Bulgaria may be fined with ˆ770,000 because of the unreformed energy market and non-compliance with the EU legislation,” Dian Chervenkondev, MP from GERB (Citizens for European Development of Bulgaria), admitted on Bulgaria on Air TV. “This is not a small amount of money, but the sanction will not be imposed,” he assured, adding that the amendments to the Energy Act, required by Brussels, would be adopted on time. At the end of February, Bulgaria and another seven EU countries were warned that they were facing penalties for not having transposed the EU Directives on electricity and natural gas from the Third Energy Liberalisation Package in their legislation. This was supposed to be done by March 3, 2011. The countries were given two months to undertake due measures.
Source: Class (05.03.2012)

U.S.-based solar power systems developer Premier Power Renewable Energy, Inc. said on Tuesday it has started the construction of a 16.2 megawatts-peak (MWp) photovoltaic power plant in Bulgaria. The Zdravetz utility scale solar power plant is scheduled to be completed during the second quarter of 2012, the El Dorado Hills, California-based company said in a press release. In September, Premier Power entered into an agreement to build the Zdravetz solar power plant through a joint venture with European firm Plaan Czech. "We look forward to building our presence in Bulgaria and other Eastern European countries as they aggressively target their renewable energy goals," Bjorn Persson, executive vice president of European operations at Premier Power, said. For every kilowatthour of electricity generated from the sun, the Zdravetz power plant will receive approximately $0.30 (0.23 euro) from the energy administration in Bulgaria for the next 20 years. Premier Power runs projects across Europe and North America, with more than 1,000 systems in operation to date.
Source: Darik Radio (07.03.2012)

The future of the Belene NPP project still unclear The reactor, designed for the first unit of Belene NPP, has been finished and is already operating in a Russian plant, stated yesterday before BNR (Bulgarian National Radio) Delyan Dobrev, who is allegedly the future Minister of Economy, Energy and Tourism. He explained that all the costs for the tests on the reactor would be covered by the state-owned NEK (National Electricity Company). "In fact, we were refunded with a lower amount of resources, compared with the sum of investment we made," retorted Dobrev. In his word, the GERB (Citizens for European Development of Bulgaria) government is again in a dire situation because a new tender contest for the completion of the units has been launched and a final bid was received on the construction of a new plant. Besides, a final decision was issued on the parameters of the deal for construction of a site without knowing its construction cost. Dobrev added that in order for a new decision to be issued on the future of the project, HSBC must submit its financial analysis and it should be made public. The analysis of the bank is expected to be ready within a month. It will estimate the likely demand index of the region in terms of electricity generated by the new power plant, as well as its indicative cost. If our country gains no profit from this project implementation or should sell the electricity at an extremely high price, the investment will be meaningless,'' commented Dobrev. Yesterday, Borissov stated that Russia had zero chances of becoming an energy partner of Bulgaria on the Belene NPP project. Before TV7, he announced that he would bear a personal responsibility for the final decision on the topic. It is imperative that this reactor should be mounted at the Belene NPP construction site, commented on BNR Yordan Kostadinov, former head of the plant near Kozloduy. A decision on the increase of the capacity of the 5th and 6th units of Kozloduy NPP is also expected to be made. This is a very important issue. In fact, the issue concerning the plant where the reactor designed for the Belene NPP project will be mounted is crucial for the Bulgarian energy sector. Bulgaria is about to put an end to its nuclear power generation, stressed Kostadinov. He predicted that in 10 - 15 years Bulgaria might be paying one of the highest prices of energy in Europe.
Source: Class (19.03.2012)

Bulgaria missed the oportunity to partcipate in the Blue Stream gas pipeline project. Will the implementation of the construction projects of NPP Belene and South Stream gas pipline fail as well? Bulgaria is not a resource-rich country and, therefore, will always be dependent on external supplies, regardless of the fact whether it comes down to natural gas, oil or other basic materials. In contrast to renewable energy sources which generate expensive electricity and coal-fired power plants which pollute settlements, for our country, NPPs (nuclear power plants) remain a reliable source of power generation . Small countries like Bulgaria cannot be energy independent and, therefore, we need a well-developed nuclear energy sector. The issue of mutually beneficial energy interdependence between individual countries is of prime importance. This was also stated in the report of scientists from the Centre for Strategic and International Studies at the Massachusetts Institute of Technology. According to them, the interdependence between consumers and producers should be used as a tool for finding common solutions on common global energy problems, including environmental protection, safety and economic considerations. A number of experts in the branch agree that economic development needs nuclear electricity generation because it is the state-of-the-art technology in the global energy sector. And each manufacturing sector in the 21st century needs electricity, and cheap electricity at that. And like every other technology, there is also risk involved and the ecological disaster resulting from the Japanese nuclear power plant Fukushima can serve as an example of mismanagement. It is a fact that, a year after the nuclear tragedy, Japan insists that its reactors be put into operation again. The reason is that the country generates electricity which is needed for the production of output, which Tokyo can sell on world markets at competitive prices. There are more than 190 countries worldwide and none is energy independent. This objective is impossible to achieve - as simple as that. All these countries import energy in the form of refined petroleum products, electricity, natural gas or coal, explained experts. According to them, the interruption of commercial relations concerning trade in energy, with a view of simplifying the relationship between states, is a short-sighted policy . What does this mean for Bulgaria? According to our experts, the Bulgarian government should not pursue energy independence and the Energy Minister is actually responsible for explaining this fact to the Prime Minister and the President. Because, in this way, the unprofitable objective set can lead to over-expenditures as a result of excess supply, followed by the disappointment that the goal cannot be achieved. And in order to remain competitive in the region, we must decide, as soon as possible, on the future of the Belene NPP construction project. Our country should be aware of the fact that June is the deadline for the bid of the French company Areva for the production of electronics for the two Russian units of the new nuclear power plant. At that point, they will not give up their proposal, but will deliver a new one, which will differ from the current price conditions, explained insiders for Klassa daily. If this happens, it is possible that the construction price of the NPP will increase significantly. The logical assumption that the construction project of the NPP Belene reactor might be sold to another contractor means that there is interest in its implementation. And the logical question here is: why should Bulgaria not profit from the electricity generation from that nuclear facility. Experts also warn about the severe winter we had this year as a result of which electricity exports from our country had to be suspended twice. These exports are one of the main budget items for Bulgarian state-run companies. Former Minister Traicho Traikov stated that our country should seek to extend the service life of the 5th and 6th units of NPP Kozloduy, but this does not prevent the progress of the implementation of the NPP Belene construction project. However, the statements that the Russian-designed unit for a second NPP can be transferred to NPP Kozloduy, instead, are untenable because it would mean that the site should be issued a new operational license by the Bulgarian Nuclear Regulatory Agency. The unit itself is heavier than the ones installed there, while the issuing of a new license certificate will take at least seven years and, only afterwards, can the construction of the facility start, explained Head of BULATOM (Bulgarian Atomic Forum), Bogomil Manchev. The CEO of NPP Kozloduy, Alexandar Nikolov stated yesterday on BNT (Bulgarian National Television) that the NPP Belene reactor can be launched into operation at the site of the First NPP, at the earliest, in a 12-year period. Currently, the licensed NPP Belene site has been cited by the EC as a praiseworthy example for its modern design. According to the former CEO of NPP Kozloduy, Yordan Kostadinov, Bulgaria is about to terminate the development of its nuclear energy sector. And that is the ill-intentioned purpose of the economic enemies of Bulgaria. Kostadinov has repeatedly stated that it is high time for a final decision on the the actual fate of the NPP Belene project to be taken, regardless of what it is. The GERB (Citizens for European Development party) government is waiting to receive the financial report of the London-based HSBC London as to whether the electricity generated by the NPP Belene will find a proper market. It was scheduled for this report to be submitted within a month, while the Consultant has already repeatedly explained that the project is economically profitable. This report's conclusion solely should be enough to make "experts" like Doctor Dimitar Ivanov consider seriously tackling the matter in which they are really experienced. Besides, the GERB government is yet to decide on the future of the South Stream gas pipeline project. Prime Minister Borissov has already stated that this project will be profitable for our country. According to the CEO of the South Stream Bulgaria JSC joint project company, Georgi Gegov, Bulgaria will earn more than $200 mln annually from the project only from collecting transit fees. Higher energy efficiency = more benefits for the people Besides the major projects, our country must develop its policies on energy efficiency, which should not remain on paper only. The Energy Efficiency Act also contains options stipulating that funds could be provided for the insulation of buildings other than the subsidies granted by the state budget and EU funds, but only after strictly complying with the legal framework. Thus, the funds intended for insulation can increase by tens of millions of Euros. The proper implementation of the measures can create many jobs in our country in times of economic crisis. Bulgaria should also amend the Renewable Energy Sources Act. It is inadmissible for a law to be amended 4 times in 2 years because this indicates uncertain and unclear points in the legal base concerning investors, commented the Association of Producers of Ecological Energy to Klassa daily. Our country is discussing the main objective of development of green energy, while, simultaneously, the pursuit of a similar policy is destroying the sector. The irresponsibility of the Energy Minister has resulted in creating chaos for green energy producers at the beginning of the year. The reason was that the Agency for Sustainable Energy Development was not ready to issue certificates of origin of energy. Even now, there is no information system in this respect. Prior to extracting shale gas, let us see how the technology develops However, Bulgaria should not rely solely on its own resources - shale gas alone. The main problem is that the hydraulic breaking technology uses chemicals that can damage the soil and pollute the water which people drink. Experts explained that it would be good to know how shale gas extraction will be met in Poland and whether this extraction will affect local nature. Therefore, a reasonable option for us is to wait for the technology to advance and, only then, to implement researches on gas extraction. We know very well that one of the few preserved national treasures is Bulgarian nature. If we destroy it, as it happened after Dundee was granted concessions and in view of the forthcoming launching of the Gorna Arda Cascade, then Bulgaria will really suffer
Source: Class (21.03.2012)

Bulgarian Energy Holding head Yordan Georgiev has been dismissed and replaced by Mihail Andonov, announced the Bulgarian Ministry of Energy and Economy Sunday. Georgiev was serving as executive director of the Bulgarian Energy Holding (BEH), an umbrella entity uniting state energy companies, since July 2010. On his part, Mihail Andonov was up to now the director of Bulgaria's National Electric Company (NEK). "BEH needs a manager who knows in detail the development of the energy sector in Bulgaria. Andonov has worked in energy for 17 years and has an excellent knowledge of its issues," stated the Ministry.
Source: Standart (26.03.2012)

NEK demands a 15% hike of electricity prices as of July The National Electricity Company (NEK) will demand no less than a 15% increase of its electricity prices as of July, the new Director of the Bulgarian Energy Holding (BEH), Mihail Andonov, said today on BNR. Before being appointed to his current position at the end of last week, he was managing NEK, which is within the structure of BEH. Then, as Klassa daily wrote, Andonov was of the opinion that NEK would ask the State Energy and Water Regulatory Commission (SEWRC) to raise electricity prices by 8.5% during the next regulatory period. One of NEK's arguments for demanding a 15% price hike for the electricity it sells to distribution companies is that SEWRC has already increased three times the preferential prices of the electricity, generated by heating utilities, which NEK has to buy. Thus, the company gets less proceeds from the sale of its energy but has to pay more to the power plants. "We hope that SEWRC will take into conisderation NEK's negative cash flows," said Andonov. According to him, with such a price NEK will be able to make up for the delay of its payments. "The company has current liabilities to its clients," said BEH's Head, but did not specify the amount. If SEWRC approves the requested price hike of electricity, this will affect the increase demanded by the power distribution companies. The power utilities EVN, CEZ and E.ON have already submitted their proposals for a change of their tariffs by 3.6%, 6.44% and 9.1%, respectively. Their calculations, however, were based on the current prices of NEK and the power plants. After it became clear that NEK would demand a 15% price increase, the Head of SEWRC, Angel Semerdjiev, admitted that the prices of the power plants would also go up because they have to buy air pollution allowances - the so-called greenhouse gas quotas. Semerdjiev's latest forecasts were that the final increase in the price of electricity for households would not exceed 10%.
Source: Class (27.03.2012)

A debt of BGN 7.2 bn accumulated by state-run companies State-run companies have accumulated a total of BGN 7.2 bn in debt, which is a jeopardy to the stability of the Bulgarian economy, Georgi Angelov, senior economist at the Open Society Institute, pointed out at a discussion called ‘The Economic Situation 2012’. According to him, the liabilities of state-owned firms are a serious obstacle to the development of the country’s economy because most of them hold a dominant position on the domestic market and if these fall into insolvency, the State has to repay debts. Presently, however, the Government has no free resources to operate in such a situation, explained the economist. The National Electric Company (NEK) is the top debtor with aggregate liabilities of BGN 2.17 bn, followed by the National State Railways (BDZ) and the Kozloduy NPP, whose debts amount to BGN 767 mln and BGN 750 mln, respectively. Thus, the liabilities of these three state-run companies alone exceed BGN 3.68 bn. Debts over BGN 0.5 bn have also been accrued by Maritsa Iztok Mines – 2 (BGN 648 mln) and the Sofia Central Heating Utility (BGN 548 mln). The other big debtors with liabilities exceeding BGN 100 mln are: Sofia Airport (BGN 150 mln), Bulgartransgaz (BGN 107 mln), the Sofia Public Transport Company (BGN 164 mln), Port Infrastructure (BGN 175 mln), Maritsa Iztok Mines (BGN 209 mln) Railway Infrastructure (BGN 213 mln) and Bulgargaz (BGN 341 mln). According to Angelov, some financial institutions, such as Municipal Bank PLC and the Bulgarian Development Bank, also have sizable liabilities. However, the structure of banks’ receivables is different and the liabilities of these two financial institutions, amounting to BGN 2.15 bn, are actually reported as attracted funds, specified the economist. According to him, a public register is needed for monitoring these debts. Angelov pointed out that according to data from the end of January 2012, Bulgaria’s aggregate public debt stood at BGN 11.68 bn, out of which BGN 4.92 bn was internal debt. Economists warned that over the next eight or nine months, Bulgaria should repay a total of BGN 3 bn in debt settlement for bonds and deficit. According to Lachezar Bogdanov, Managing Partner at Industry Watch, the Cabinet has to introduce a balanced budget. “Had that happened a year ago, we would not be wondering now how to find BGN 1.6 bn for paying the bonds maturing in January 2013. Bulgaria’s revenues from privatisation are low, its reserves have decreased and it is not clear who will lend us this money,” Bogdanov stated. Dimitar Chobanov, economist and professor at the University of National and World Economy, said that the Government could not raise these funds on the domestic market. A few days ago, the Finance Ministry issued government securities worth BGN 50 mln, but bonds worth only BGN 42 mln were purchased because investors seek higher returns, which the Bulgarian bonds cannot yield. According to Chobanov, seeking financial assistance from the IMF is a realistic option, despite the negative effects which such funding could have. Georgi Angelov also commented on the issue of resorting to the money from the so-called Silver Fund. The decrease of the fiscal reserves from BGN 12 bn in 2008 to BGN 4.5 bn in 2012 is among the main economic problems in Bulgaria. He expressed concern that if money for future payment of pensions was set aside, the fiscal reserve would decrease from BGN 4.5 bn to some BGN 2.5 bn. However, this money cannot be used because of Bulgaria’s commitments to the European Union. Thus, Bulgaria will practically remain without any reserves, the economist pointed out, specifying that such steps would position our country at the bottom in the European Union in terms of amount of reserves.
Source: Class (09.04.2012)

HSBC: The Belene NPP would have cost ˆ10.350 bn “A total of ˆ10.350 bn, or about BGN 22 bn, would have cost the Belene Nuclear Power Plant (NPP) if it had been built,” announced Prime Minister Boyko Borissov in Parliament after the unsuccessful attempt of the Bulgarian Socialist Party to demand a vote of no confidence in the Government yesterday. The data is from the report of the Government’s consultant - the British HSBC. Parts of it were published on the website of the Ministry of Economy, Energy and Tourism. “At that price of the plant, the electricity generated from it would have cost about ˆ75 per MW/ hour,” said Borissov. “The costs for demolition of the existing works at the site of the Belene NPP under Appendix 3 exceeds by 2,000 times, or 200,000%, the threshold set in the Public Procurement Act, which stipulates that in this case a tender procedure for the selectiion of a contractor has to be carried out,” said the Prime Minister. Instead, the National Electricity Company (NEK) assigned the job to Atomstroyexport, which won the tender for the construction of the second Bulgarian NPP. Appendix 3 was signed by CEO of NEK Lyubomir Velkov and Executive Director of NEK Madrik Papazian, found the auditors from the Public Financial Inspection Agency (PFIA). It provides for the payment of ˆ109,004,179 for the demolition of the former construction works. In the period between June 10, 2008 to December 30, 2009, NEK paid a total of ˆ101,575,722 (VAT excluded). The tax due on this amount is ˆ20,315,144. With the tax the amount exceeds the agreed sum and reaches ˆ 121,890,866, found the inspectors from the PFIA.
Source: Class (24.04.2012)

Dobrev: Bulgaria will issue bonds in order to pay for the loan for the construction of NPP Belene The pressing issue of the credit extended by the banking syndicate headed by BNP Paribas has not yet been resolved. The request for a one-year extension of the five-year loan worth ˆt.250 mln was declined by the two banks willing to grant the funds, stated yesterday at the Green Economy Forum, the Minister of Economy, Energy and Tourism, Delian Dobrev. The resources needed are ˆ55 mln, - an amount which should either be borrowed or paid in part. May 23 is when the loan matures. The other banks agreed to extend the deadline in return for receiving more beneficial general terms and conditions, said Dobrev. According to him, NEK (National Electric Company) has no funds to repay the credit, but other options will be sought for finding money from the Bulgarian Energy Holding /BEH/. There is no time to get a new loan. In the long term, we will consider the alternative of issuing bonds to repay and refinance the loan, said Dobrev. The report of the Public Financial Inspection Agency on the NPP Belene construction project, which was published on the website of the Economy Ministry yesterday, was mailed to the Prosecutor's Office as early as April 17, added Dobrev.
Source: Class (25.04.2012)

NEK Emits Bonds to Pay for Belene NPP The National Electric Company (NEK) will emit bonds in order to pay a 55-million euro installment on the loan of 250 million euro to a bank consortium led by BNP Paribas. The credit was drawn for payments to the Russian side for the purchase of equipment for the Belene NPP project. “Despite the attempts of Bulgaria’s cabinet to spread the payment on the credit by 1 year, at this stage only 4 of all 6 banks in the consortium agreed to do so,” Bulgaria’s minister of economy and energy Delyan Dobrev commented. The other two banks insist that Bulgaria should pay the due installments, as the sum of 55 million euro has to be paid on the maturity day, which is May 23. The National Electric Company, however, doesn’t have money to pay this installment, Minister Dobrev said flat. For six months now we have been working to cure the current financial situation. It is not easy to find a way out of it and space out the loan, he explained. Two of the banks refused because of the problems with their own portfolios, he commented further. Others agree to space out the payments although under more advantageous payoff conditions. That is why the maturity in May will be paid by BEH. In the long term experts mull over the issuance of NEK bonds that will enable the country to settle the debt, the Minister declared.
Source: Standart (25.04.2012)

Specialised group prepares the setting up of a project company for the construction of the 7th unit of NPP Kozloduy The setting up of a project company to construct the 7th unit of NPP Kozloduy has been provided for. In the first stage, it will be 100% owned by our first nuclear power plant. For its implementation, a specialised working group was set up, which is chaired by Valentin Nikolov, Deputy Minister of Economy, Energy and Tourism. Next week, the participants will gather to draw up a roadmap of the project. The latter was announced by Nikolov after opening the international forum dedicated to strategic energy challenges in the EU. It was attended by companies from the Visegrad Four including the Czech Republic, Poland, Hungary and Slovakia, as well as Bulgaria and Romania. "Russia has not addressed its official claims against Bulgaria on the NPP Belene project," flatly denied all allegations circulated in the Russian media on that issue Deputy Energy Minister Nikolov. According to him, so far, no one has mentioned anything about Moscow filing claims worth ˆ1 bn against our country. Bulgarian liabilities to Atomstroyexport for the 1st reactor of NPP Belene have not been calculated yet. CEZ Bulgaria SJC insists that our country must finally introduce real market prices in terms of electricity in order to enable companies to refund the investment expenditures they have incurred, reported Petr Dokladal, Regional Manager for CEZ Bulgaria. He reminded that CEZ has owned TPP Varna since 2005 and, since then, he has been waiting for our country to liberalise the market. "We cannot export electricity to Turkey, Romania and Serbia because we must pay ˆ12 for the transmission of a MW of electricity and, in this case, exports becomes unprofitable," complained Dokladal. He announced that, during this extremely cold winter, TPP Varna prevented the Bulgarian power system from collapsing three times via activating its cold reserve units.
Source: Class (27.04.2012)

True record recorded the Regional Inspectorate of Environment and Water in Pazardjik considering applications for construction of mini hydropower plants in the region. So far 40 investment proposals for construction of facilities were collected, mainly in rivers Chepinska, Stara and Topolnitsa. So far in the area working mini hydropower plants are five. Two of them are in Velingrad municipality on Chepinska and Lepenitsa rivers and another three municipalities in Pazardjik, Peshtera and Lesichovo municipalities. Soon it is expected to be put into operation new plants Varvara and Eli dere that are on Chepinska river. For the entire East region there are already 48 working mini hydropower plants.
Source: Standart (27.04.2012)

Bulgaria to set up a project company for unit 7 of Kozloduy NPP “A project company for the construction of unit 7 of the Kozloduy NPP will be set up in the coming days,” said Minister of Economy, Energy and Tourism Delian Dobrev. “We expect this company to make all the necessary preparations for licensing the site for additional capacity,” he explained. The project company will be 100% owned by Kozloduy NPP. “It will be registered when work on the project starts. In this way, the financial stability of Kozloduy NPP will not be jeopardised, as it happened with the Belene NPP project and the National Electric Company, which faced difficulties in fulfilling its credit obligations,” said the Energy Minister. According to him, the initial capital of several million BGN will be used for paying all the costs for licensing the site, all preliminary geological surveys, as well as the sociological and economic analyses. Within a year, after the completion of the preliminary activities, a deadline for the construction of Kozloduy’s unit 7 can be set. “A strategic investor will be sought in 2013, after the preliminary work is done and the site is licensed,” specified Minister Dobrev. “We have arguments to demand better terms for natural gas supplies from Russia next year,” added the Energy Minister but declined to comment on how this would affect the price of natural gas in Bulgaria. According to him, the negotiations on the next contract for gas supplies should begin, because the current one will expire at the end of 2012. According to Dobrev, our goal is to agree on better terms than the current ones. He reminded that he had managed to achieve a reduction of the price by a little more than 11% earlier this year.
Source: Class (02.05.2012)

The Bulgarian Energy Holding (BEH) will cover EUR 55 million (BGN 107 million) from the syndicated loan that its subsidiary – the National Electricity Company (NEÊ) has towards the consortium of banks led by BNP Paribas, NEÊ’s Executive Director Ivo Lefterov said. By end-October 2011 the BEH had BGN 114 million in deposits, BGN 79 million of which kept at Corporate Commercial Bank.
Source: Capital Dàily (04.05.2012)

NEK to recieve a one-year deadline extension for the loan from BNP Paribas “The National Electricity Company (NEK) will recieve a one-year deadline extension for its loan from BNP Paribas, amounting to ˆ250 mln. Part of the loan will be paid with credit from the Bulgarian Energy Holding (BEH), granted to NEK,” said Delian Dobrev, Minister of Economy, Energy and Tourism, who attended the fourth International Environmental Congress 2012, organized by Overgas yesterday. The Minister noted that the current instalment would be between ˆ50 and 70 mln and that the BEH was likely to pay the amount of ˆ 50 million because NEK had free resources to repay the rest. The payment of the remaining part of the loan will be extended by one year. The maturity of the loan expires on May 23, 2012. The deadline extension was agreed by the bank and the decision on the current contribution was made by the Management Boards of BEH and NEK last week. The Bulgarian authorities are still calculating the amount, which NEK owes for the Russian nuclear reactor for the Belene Nuclear Power Plant (NPP). “The amount is not large and we have no firm deadline in which to pay this liability. After having justified exactly how much we owe to Atomstroyexport, the funds will be paid within a normal term,” Dobrev said. According to Sergey Kiriyenko, Head of Rosatom, our country owed about ˆ1 bn for the reactor at the end of April. Dobrev did not exclude the option of selling the equipment, but noted that the registration of the project company for the construction of the 7th unit at the Kozloduy NPP was underway. Bulgarian end users still do not consume cheaper gas, even after Russia reduced the fuel price by 11% as of April 1. A decision of the State Energy and Water Regulatory Commission is expected. According to the Minister, the reduction will be calculated retroactively after signing the relevant agreements with Gazprom. He did not announce how this would happen and how it would affect consumer prices of natural gas.
Source: Class (08.05.2012)

The preferential prices for purchasing energy from renewable sources will be reduced from July 1, 2012, according to Angel Semerdzhiev, Chair of the State Commission for Energy and Eater Regulation (DKEVR). "Analysis is now underway, but energy prices will definitely drop, especially prices of energy generated by photovoltaic plants, because capital expenditures are also decreasing," the DKEVR Chair explained Tuesday, without citing concrete figures.
Source: Darik Radio (16.05.2012)

Standard & Poors confirms NEK's rating The International credit-rating agency Standard & Poors confirmed the credit rating of the Bulgarian state-owned electricity utility NEK and maintained the BB credit rating. The reason for the confirmation of the status of the National Electric Company (NEK) was the maturity of ˆ 55 mln as a disbursement instalment of a syndicated loan withdrawn in 2007 from the French bank BNP Paribas amounting to ˆ250 mln. The loan was borrowed by the company for pre-feasibility studies on the suspended project of the construction of the NPP Belene. "We believe that our confirmation eliminates the immediate risk for NEK's liquidity. Therefore, we maintain its 'BB-' long-term issue credit rating. Despite the solving of the issue of the maturity in the short term, the liquidity management of NEK remains aggressive, while the debt maturity profile remains short, noted also Standard and Poor's. "We have completed our task. The fact is that we have already transferred a loan instalment. I refuse to make any further comments," stated for Klassa daily, Ivo Lefterov, CEO of NEK. NEK requested a one-year deferral of the loan borrowed from Paribas, but the Belgian Dexia and Japanese Mizuho objected and the amount became due immediately. Therefore, NEK's parent company - Bulgarian Energy Holding, decided to extend a loan to its subsidiary in order to repay its liabilities. The total amount of NEK's loans, worth nearly ˆ478.5 mln, are owed by the company to 9 creditors. Out of these, a total of ˆ68.5 mln are targeted for the modernisation and development of its energy network. Besides, ˆ160 mln are intended for the construction of the hydropower system “Tsankov kamak” (stone of Tsanko), while the remaining ˆ250 mln are earmarked for the construction of NPP Belene. In October 2010, Standard & Poor's downgraded NEK's issue credit rating of BB to (BB-) because of its participation in the construction of a second nuclear plant and due to the company's financial condition. At that time, the outlook was negative which means that, in the short term, new rating reductions may follow.
Source: Class (19.05.2012)

Moscow Claims EUR 1,1 B as Compensation for Belene Project Rosatom, Russian state nuclear energy corporation, will demand from Bulgaria 1,165 billion euro in compensation for dumping Belene nuke project. The sum covers the equipment ordered by Bulgaria’s National Electric Company, groundwork at the construction site carried out by Russian contractor Atomstroyexport, etc., a source close to the negotiators told The Standart. The sum is not finalized and may vary within narrow margins. The manufactured equipment includes two reactors, their cost accounts for the largest item in the balance sheet. The first reactor is almost ready and could be delivered to Bulgaria by end-year. As for the second one, the claims of the Bulgarian and the Russian negotiators differ – Sofia claims that it is 25 percent ready, while Russians maintain that the reactor is 80 percent ready. Bulgaria plans to sell the second reactor to a third party.
Source: Standart (01.06.2012)

Just before the active summer season Burgas was left without hot water due to debts to the gas supplier Bulgargaz. The Vratsa water supply utility is in a similar state. The residents of the capital could also have been left without hot water as Toplofikatsiya Sofia is the third water supply utility with unpaid debts to Bulgargaz. Toplofikatsiya Sofia has promised that they would transfer BGN 6 million to Bulgargaz by the end of the week to wipe out their debts. As for the Vratsa water supply utility, it transferred BGN 850,000 on Tuesday. “We have no problems with the money for the energy produced. We have business relations with CEZ, not with NEC,” Mr. Kremen Georgiev, Deputy Manager of the company, said.
Source: Standart (06.06.2012)

According to Eurostat data, Bulgaria ranks second in the EU in terms of growth in electricity production According to Eurostat data, Bulgaria occupies a leading position in the EU in terms of electricity production in 2011, with a growth of 7.5%. The information is based on data from the national statistics. Only Greece is ahead of us with a growth of 12.2%. In April 2012, gross and net electricity production in the country stood at 3,560 GWh and 3,231 GWh, according to NSI data, released on Thursday. Imports of electricity amounted to 100 GWh and exports - to about 800 GWh. NSI reported that, in April, domestic net consumption of electricity was 2,563 GWh. The share of renewable energy sources in final gross electricity consumption was about 14% per annum. After a considerable increase in electricity production in 2010 of 4.5%, in 2011, the electricity generated in the EU dropped by around 0.5% on an annual basis, showed recent Eurostat data. The share of electricity generated by nuclear power plants in the EU has remained stable and is about 28% of the total production of electricity. Photovoltaic electricity production has increased by 58.9% in the EU, according to Eurostat data. The largest growth of electricity production from renewable energy sources was reported in Norway - around 97%, Austria – 60%, Lithuania – 50%. Bulgaria is in the middle of this ranking with about 12-14%.
Source: Class (08.06.2012)

SEWRC Chairman, Angel Semerdjiev: Natural gas prices will increase by up to 5% as of July 1 Even if Bulgaria fails to sign the agreement with Russia for the 11.1% reduction of the wholesale price of natural gas, the price of the blue fuel will rise by a minimum amount as of July 1 in order not to affect heating prices, stated Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC) on Tuesday. "We determined that in case of a 5% increase in gas prices, heating prices will not change. In the next stage, if this accumulation becomes more than 5%, the correction will be necessary because district heating companies operate with minimum revenues. In order for them to continue to operate, the change in natural gas prices must be taken into account,'' explained the mechanism the Chairman of SEWRC. The specific growth rates in gas prices will be determined when we see the signed contracts, said Semerdjiev. "Should the gas supply in definite contracts be reduced to this percentage, a very similar effect will be obtained in the final gas price. Of course, without considering the uncollected income of Bulgargaz, which continues to rise since the beginning of the year", added he. According to the Head of SEWRC, the reductions will not differ essentially from the 11% decrease. On Monday, Bulgargaz announced that the company demanded from the Regulator a 15.73 % increase in gas prices, which will result in a gas price of BGN 809.05 per 1,000 cu m, excise duties and VAT excluded. Currently, it is traded for BGN 699.10 per 1,000 cu m, both taxes excluded. "Every 3 months, Bulgargaz demands an increase of 20%. This time, it requires a more modest hike of 16%," stated on BNT (Bulgarian National Television), Minister of Economy, Energy and Tourism, Delian Dobrev on the occasion of the consequent proposal for a drastic increase of the blue fuel price. According to the Minister, the gas market must be liberalised in order to admit new players, thus decreasing gas prices. Dobrev predicted that gas prices will drop when we start to encourage domestic gas supply.
Source: Class (13.06.2012)

Nearly one sixth of electricity consumption in Bulgaria is from RES “About one sixth of electricity consumption in Bulgaria in 2010 was from renewable energy sources (RES),” said Evgenia Haritonova, Deputy Minister of Economy, Energy and Tourism to the participants at the Energy Forum 2012, held in Varna, posted BTA. With a total electricity consumption of 32 TWh, the electricity supplied from the so called green projects reached 5 TWh. According to European standards, by 2020, the production of "green energy" in Bulgaria should reach 16% of total consumption. This makes 5.12 TWh by 2020. According to Haritonova, the capacities for "green energy" in the country have increased a way too much. She reminded that about 20 decares are needed for the setting up of 1Mw capacity in the solar parks. “The increase in fuel prices from imports is one of the main reasons for the raise in electricity prices,” said the Deputy Minister. The “green energy” has an impact on the price as well, but we must pay for it and compromise if we want our children and grandchildren to live in a normal world," said Haritonova. According to her, Bulgaria’s energy strategy by 2020 is in line with the current map of the European energy policy and with the global trends in the energy technology. She noted several trends, such as - reduction of our dependence on imported energy resources, including via diversification of energy resources and suppliers, institutional support for the development of our nuclear energetics.
Source: Class (14.06.2012)

Bulgaria's Heavy Industry Alarmed by Looming Gas, Electricity Price Hikes Heavy industry companies will not survive the anticipated increase in prices of electricity and natural gas from July 1, according to Politimi Paunova, Chair of the Bulgarian Association of the Metallurgical Industry (BAMI). In a Tuesday interview, Paunova noted that the need t inject gas supplies into the Chiren underground gas storage could not be an excuse for the huge gas price increase. She went on to say that state-owned gas supplier Bulgargaz and the State Commission for Energy and Water Regulation (DKEVR) were playing theatrical performances about gas prices. "I find it humiliating to witness these performances," Paunova declared, adding a request by the National Electric Company (NEK) or Bulgargaz for a certain price hike was always followed by a representative of the energy watchdog vowing a lower increase. She explained that the same scenario had been played over and over again for the past ten years. "These are 100% theatrical performances – there's the good cop and the bad cop, and then it's "Hurrah! We're saved! The increase will be 5% rather than 15%", and then in 3 months' time the history repeats itself.To me, as a citizen, this behavior is humiliating," she stressed. Paunova was adamant that the heavy industry would not survive a 10% increase in power rates and a 5% increase in gas prices, as announced by DKEVR Chair Angel Semerdzhiev on Tuesday.
Source: Darik Radio (14.06.2012)

Deteriorating financial state of National Electricity Company (NEK) has begun to manifest as a refusal for purchase of electricity. At the beginning of last week's NEK has sent letters to most heating companies in the country (currently without Heat Supply - Sofia) that during this month it will not be able to buy their electricity energy from cogeneration. The company is obliged by law to pay all the energy produced in this way. NEK will buy about half the electricity produced by the companies this month, said Vice-President of the Association of Heating Companies in Bulgaria Valentin Terziiski, who is also executive director of Heat Supply - Pleven. This actually means that some towns in Bulgaria may remain without hot water because NEK is unable to meet its obligations. By law, the company is obliged to purchase high-efficiency cogeneration, which is then paid by each member country as a supplement to brown energy.
Source: Capital (18.06.2012)

Electricity price to increase by nearly 10% as of 1 July “The increase in electricity price for end users will be about 10% this year,” said Angel Semerdjiev, Chairman of the State Energy and Water Regulatory Commission (SEWRC) for TV7 on Wednesday. According to him, the price hike is due to European regulations, which require the switching of a greater share of green energy to the electrical grid. The regulator is trying to reduce the costs of all companies involved in electricity pricing along the chain in order to mitigate the effect of the compliance with the European directive. “The trend of cost reduction of network services is being maintained. This is an issue which we do regulate and will remain under regulation after the market's liberalisation. Electricity prices will also be reduced at units operating on local fuel,” Semerdjiev explained. He added that there is a price hike in the part affected by the addition for green energy. In our country, the long-term contracts, which impose the necessity for extra money to be paid because of the unrecoverable costs of the AES Maritsa Iztok-1 and the ContourGlobal Maritsa Iztok – 3 Thermoelectric Power Plant (TPPs) contribute to the price increase as well. Both plants sell their electricity at prices above BGN 125 /MW to the National Electricity Company. “The contracts with the two TPPs are at unreasonably high prices, assessed from today's perspective,” said the Chairman of SEWRC. He reminded that, even some time ago, he was ready to open these contracts in order for these to be renegotiated. “They are the only contracts in the country which are not subjected to regulation by the SEWRC, as stipulated by law. With the onset of the crisis, all the other plants have been pushed to implement spending cuts but in these two cases, however, we have no mechanisms to intervene,” explained Semerdjiev.
Source: Class (21.06.2012)

Produser of sanitary materials Medica plans to construct a new warehouse for liquid medicaments. Permission for construction is to be obtained in days. The warehouse will be situated on the existing site of the company in Sandanski. The investment is assessed to BGN 1.5 million, own funds. It will cover construction of the warehouse , as well as necessary new machinery. Special dressings that are treated with medication, so far not produced in Bulgaria will be made there. They are more expensive and are used for specific injuries such as those produced by burning. Besides the investment in new plant and machinery, Medica set aside another BGN 500 thousand with which to cover the cost of licenses of medical cosmetics for records and registration of products abroad. Basic markets of the company are Bulgaria, Ukraine and Russia.
Source: Capital (25.06.2012)

The notorious businessman Ivo Prokopiev collects as profit millions of leva from the sale of limestone at inflated prices A profit of millions of leva from the sale of limestone alone is being collected by the notorious businessman Ivo Prokopiev, who is a majority owner of Kaolin JSC, according to the results of an inspection of the Ministry of Economy, SEWRC (State Energy and Water Regulatory Commission) and NEK (National Electricity Company) on the purchasing price of limestone used by the TPP Maritsa-Iztok 1 (Maritsa-east), TPP Maritsa- East 2 and TPP Maritsa-East 3, announced the Minister of Economy Energy and Tourism, Delian Dobrev on TV7 on Sunday. The inspection has already detected a significant difference reaching up to BGN 10 between the selling prices of the limestone produced by Kaolin JSC to the private and public TPPs. According to Dobrev, 3-4% of the prime cost of electricity is determined by the limestone price. Based on his calculations, if there is a difference of BGN 10 in the price per tonne of limestone, the difference in selling prices will form an income of BGN 20 mln for Kaolin JSC. Therefore, according to Dobrev, the state is interested in checking whether the market price could be lowered. "The price of limestone is covered by us all. If we start paying carbon emissions, these will be charged on the price of electricity for the end user," explained the Minister. It is a fact that the costly limestone is purchased by Ivo Prokopiev's company Kaolin JSC, admitted the SEWRC Head Angel Semerdjiev. The contracts on the last concessions for limestone extraction of Prokopiev's company were signed by the former Economy Minister, Traicho Traikov, who owns shares in Kaolin JSC. The investigation of TV 7 established that the Minister's report on granting a concession to Kaolin JSC, a company where he is a shareholder himself, is more than generous. It stipulated that Kaolin JSC will pay a concession fee of 4% on the company's turnover for the production of 350,000 tonnes of raw material per year, or BGN 287,000. This means that Kaolin's turnover should reach BGN 7.127 mln. According to geologists, given these parameters of the decision of the Council of Ministers (CM), our country itself is defrauded. Subsequently, the CM's decision was suspended by the court and failed to enter into force as it is being appealed by environmentalists.
Source: Class (26.06.2012)

Bulgarian Energy Holding to select a new Head of the National Electricity Company Bulgarian Energy Holding (BEH) announced the start of the procedure for selection of a new Executive Director of one of its subsidiaries - the National Electricity Company (NEK). The applicants must be Bulgarian citizens or citizens of an EU member state. They should have higher education - technical, economic or legal one. They also should have experience in senior management positions in commercial companies or government structures from the energy sector. The new Head of NEK should not perform leading or control functions in a political party. The applicants cannot be related to a member of the management or supervisory body of BEH or its subsidiaries, and cannot be agents or managers of an offshore company. Previous experience in investment projects in the energy sector and a good understanding of the mechanisms of operation of the EU institutions will be considered an advantage. On March 28, 2012, Ivo Lefterov, Finance Director of NEK, became acting manger of the company. He assumed the post from Mihail Andonov, who became Executive Director of the Bulgarian Energy Holding.
Source: Class (27.06.2012)

Bulgargaz: Sofia may remain without hot water as of July 2 “Bulgargaz JSC warned that it would stop the gas supplies to the Sofia Central Heating Utility as of July 2 if the company failed to pay the already delivered fuel by that date. This may result in suspension of the hot water supply to the customers of the heating company in the capital,” Dimitar Gogov, Executive Director of Bulgargaz said during a discussion at the State Energy and Water Regulatory Commission (SEWRC). Some time ago, the citizens of Bourgas remained without hot water for the same reason. The liabilities of the Sofia Central Heating Utility to Bulgargaz amount to BGN 154 mln. They increased from BGN 74 mln before the start of the heating season in October 2011. In a letter to the heating company last week, the public gas supplier demanded its overdue money but received no response. Bulgargaz has lost BGN 230 mln so far and according to its Executive Director, Dimitar Gogov, the company cannot bear such a burden. “We strongly insist on having our receivables immediately paid, bringing them at least to the level of October 1,” said the Executive Director of Bulgargaz. Gogov made his statement during the discussion on how much should the price of natural gas increase as of July 1. SEWRC suggested that the price hike should be less than 5%, while Bulgargas demanded an almost 16% increase. SEWRC’s Chairman Angel Semerdjiev asked Bulgargaz to work in such a way so as to ensure affordable prices of natural gas for consumers, and hence – of central heating and hot water.
Source: Class (27.06.2012)

New electricity prices to cost industries BGN 40 mln a year The recent, nearly 16% increase in electricity prices will cost the members of the Bulgarian Federation of Industrial Energy Consumers (BFIEK) BGN 40 mln a year. “The fees for green and brown energy and the unrecoverable costs of the National Electric Company (NEK) will go up by BGN 11.37/MW, or a total of 45.7%,” BFIEK’s Executive Director, Konstantin Delisivkov, told Klassa. “Therefore, we will appeal this decision,” stated Konstantin Stamenov, head of BFIEK. “Our lawyers are now preparing the legal arguments and will submit to the Supreme Administrative Court a request for revocation of these prices,” added Stamenov. Fourteen large industrial enterprises are members of BFIEK. “I suppose that all branch and employer organisations will support us,” predicted Stamenov. According to him, the price hike will be detrimental in the conditions under which firms have been suffering losses for years and barely survive. “They saw what happened with the construction bubble – the recently-built hotels are now empty. We will make every effort to achieve affordable prices. This is stipulated in the Energy Act,” pointed out Stamenov. “We have been in an economic recession for four years now and last-minute changes like this one will result in a collapse of the Bulgarian economy,” BFIEK stated. “Until a year ago, everybody hoped that exports would pull the economy out of the crisis but, now, nobody is sure that this is possible. These industries have been suppressed by the lack of predictability, cross-subsidising in the energy sector and the high grid prices and surplus charges,” BFIEK pointed out in its position.
Source: Class (04.07.2012)

People may choose power companies at their will Households and SMEs in Bulgaria are now able to handpick their electricity suppliers after the Parliament passed on Tuesday the amendments to the Energy Act. Thus, for instance, CEZ subscribers may opt to switch to EVN services and get charged by the EVN tariff, though they will still owe grid transit fees to CEZ. The same scheme applies to the gas market, too. The legislative changes make sure all electricity and gas producers/traders have access to transit grids in the country. Proprietors of the grids are not authorized to turn down requests for access. The new rules also provide for easier termination of subscription contracts. With the latest amendments, SEWRC is able to change the prices of power from renewables more than once a year.
Source: Standart (04.07.2012)

For a consecutive year Bulgarian refinery tops the Capital’s list for the biggest companies in Bulgaria - "Capital 100". Lukoil Neftochim Bourgas’ revenues for 2011 increased by 23% and reached BGN 6.7 billion, which is a result comparable to these registered before the start of the crisis. Increase in oils’ prices in the last year actually provided for goods results of the two Bulgarian companies of the Russian group Lukoil. Results for 2011, however shows that in the in the top tier, there is a new champion- copper extracting smelter based in Pirdop-Aurubis Bulgaria.In recent years the company increased its revenue ten times, as only last year its growth is over 45% reaching BGN 4.7 billion. In its final version ranking of the top ten companies was as follows: Lukoil Neftochim, Aurubis Bulgaria, Lukoil Bulgaria, NEK, OMV Bulgaria, Bulgargaz, Naftex oil, CEZ Electro Bulgaria, Overgas and Mobiltel. For a consecutive year pre-requisite for falling among the top ten are revenues of more than BGN 1 billion. In 2011 that was possible for Overgas, as well, which enters the club of corporate giants in BTC’s place. Revenues of the companies in telecommunication sector shrink. Total revenues of the top 10 companies increased by 18.7 percent in 2011, which is comparable to the progress of the top 100 companies, registering an increase of 18.4%.
Source: Capital (05.07.2012)

Bulgaria's energy sector is like a roller coaster Bulgaria's energy sector is everything but predictable and consistent so we can call it a real roller coaster, said Nikola Gazdov, Chairman of the Managing Board of the Bulgarian Photovoltaic Association (BPA), quoted by BGNES. Renewable energy sources have turned into a political bubble gum; this chaos puts between 5,000 and 7,000 jobs at risk and threatens Bulgaria's export potential. According to data of BPA, production capacities were between 350 MWh and 600 MWh for June-July 2012 and the energy produced was sold for BGN 237/KWh. "The tariff was considerably higher than a few years ago, but its drop for the period 2007-2012 stood at about 80%," Gazdov commented. According to 2012 data revealed by Gazdov, SEWRC claims that 660 MW of energy from photovoltaic sources was produced for which the sum of BGN 320,100,000 was paid. The data of BPA shows that BGN 251,900,000 were paid for the same amount of electricity. It is supposed that the difference between the amounts of the renewable energy tariff (BGN 68.2 mln) will be used to recapitalise NEC and will not be given to electricity producers, Gazdov added. In 2011, we proposed a one-off tariff decrease of 15%-22%, but that proposal was rejected with no clear arguments. Since 2009, we have seen two ministers of Economy, Energy and Tourism, five Executive Directors of NEC and three Executive Directors of BEH, Gazdov pointed out. Even we find it hard to put forward our ideas because the heads of institutions are being replaced all the time.
Source: Class (06.07.2012)

SEWRC: The price increase of electricity does not serve NEK’s interests The Chairman of the State Energy and Water Regulatory Commission (SEWRC), Angel Semerdjiev, rejected allegations that the proceeds from the requested price increase of electricity would go to the National Electric Company (NEK). According to the Head of the Bulgarian Photovoltaic Association, Nikola Gazdov, the difference between the money NEK will pay for solar energy and the manufacturers’ proceeds will exceed BGN 68 mln in just about 2 or 3 months. “This thesis is not at all true,” stated Semerdjiev. “I can very easily resign, but this will not solve any problems,” said SEWRC’s Chairman on BNR on Sunday. “Things in the energy sector have not been going on well for quite a long time. The price increase of electricity is largely due to the desire of more money entering the system in order to stabilise it. Photovoltaics are only part of the problem. Some 55% of the money from the price increase is within the system,” Dr. Konstantin Trenchev, leader of the Podkrepa Labour Confederation stated on BNR. If an electricity company is indebted, this means that there is something deeply wrong with it. “As a colleague of mine used to say, you may give these people a train full of heroin and they I will again have losses,” added Trenchev.
Source: Class (09.07.2012)

OZK will receive electricity State-run National Electric Company will continue to supply OZK with electricity, despite the outstanding liabilities, said Economy and Energy Minister Delyan Dobrev. The two companies will have to reach an agreement on how the BGN 125-thousand in outstanding bills will be acquitted. Largest creditors of OZK at the moment are commercial banks. According to trade unions even the zinc in company furnaces was used as collateral for a loan from BNP Paribas. The credit institution insists on the zinc to be taken out of the furnaces and sold. Yesterday morning 50 workers formed human chain to hamper access to the plant’s induction furnaces. Their intention as to stop workers hired form the creditor bank to take the 50 tons of liquid zinc.
Source: Trud (25.07.2012)

OZK left with one furnace Lead and Zinc Complex JSC – Kurdzhali (OZK) will remain with only one furnace. Its maintenance requires BGN 9,000 for electricity each month. Over 10 tons from one of the induction furnaces was already drained by yesterday morning, which is half of the metal in the facility, the company explained. After a rumor on Monday that EVN will cut off the electricity of the plant because of unpaid bills, the company announced that the works is not their client. Later it became clear that OZK owes NEK over BGN 120 000. Electricity has already been prepaid for two months and there is a chance for the plant to works.
Source: Novinar (26.07.2012)

Vratsa-based factory for fertilizers is again is declared bankrupt, which gives a new possibility of its major creditors - Bulgargas and NEC to get delayed by a decade debts to the amount of BGN 80 million. A temporary trustee, who will assess the assets and will announce tenders for sale is appointed. The bankruptcy was announced after the Sofia Appellate Court overturned the decision of the District Court in Vratsa, which for years accepted the trust remedial programs to private investors. Creditors and former employees were being deluded with numerous projects for revival of the factory. During this time the entity's shares were transferred from one investor to another, while the nominal was devalued to BGN 1.4.
Source: investor.bg (30.07.2012)

350 people banished from Bulgaria's TPP – Varna 350 people may lose their job if a plan for job cuts at TPP – Varna is put into action. The job cuts may be necessary due to the difficult negotiations with the National Electricity Company and the Electricity System Operator for the signing of an annex for the availability of the cold reserve for a term of one year – since July 2012 until July 2013, the Executive Director of the TPP Kamen Boshnakov explained. The leader of the Confederation of independent Trade Unions in Bulgaria at the TPP Hristo Hristov said that they would not allow for one more enterprise to be closed down so easily and strikes could be undertaken. If the number of the staff was reduced to a minimum there could be problems with the electricity supply on the entire territory of North-eastern Bulgaria for a long while. Due to the lack of clarity in the return on its future investments CEZ may reconsider its business plans in Bulgaria, he commented. Due to similar problems many foreign companies were already withdrawing, he noted.
Source: econ.bg (07.08.2012)

Bulgarian exports of electricity went down by 22% in the first half of the year, as compared to the same period last year. Minimum decline of less than 1% is registered for domestic consumption. As a result total consumption of electricity, generated in Bulgaria went down by nearly 6% to 19.7 mgwatt hours. For the six months of 2012 NEC declared a loss to the amount of BGN 128 million , as compared to a profits of nearly BGN 50 million reported for the same period of 2011 According to the analysis of NEC only for green energy it paid by BGN 146 million more than it received. The difference comes between planned and actual payments for green electricity. Another reason for the big loss was significantly depleted sales on the free market - nearly 4 times as the fall in quantities of energy transferred. In addition, NEC believe that the regulator has not fully reflected in their price the cost of purchasing energy from various sources
Source: Monitor (07.08.2012)

Renewable Sources Curb Electricity Prices in Bulgaria The shocking fourteen percent increase in the retail price of electricity in Bulgaria as of July 1st, 2012 is hardly likely to repeat itself in the near future, as the government has taken several years’ break from including new renewable electricity capacity into the country’s power grid. According to the ten-year plan for expanding Bulgaria’s power grid, new capacities from renewable energy sources will be included after 2016, the national electric utility NEC said. Furthermore, only renewable power units that have signed preliminary contracts with the local electricity distribution companies will be included in the power grid.
Source: Standart (15.08.2012)

Foreign direct investments (FDI) in Bulgaria registered triple growth in the first half of 2012, showed preliminary data of the Bulgarian National Bank (BNB). From the beginning of the year until the end of June, these amounted to ˆ221.4 mln, or 0.6% of GDP, compared to ˆ63.2 mln, or 0.2% of GDP a year earlier, BNB reported. The equity capital (remitted/withdrawn instalments in cash and in kind by non-residents in/from the capital and reserves of Bulgarian enterprises and the proceeds/payments from/on real estate deals in the country), attracted in January-June 2012, amounted to ˆ422.1 mln, or ˆ115.9 mln higher than the equity capital attracted in the same period of 2011 (ˆ306.2 million). Proceeds from investments of foreign persons in real estate for the period amounted to ˆ122.9 mln, compared to ˆ98.1 mln in January-June 2011. The reinvested profit for the first six months of 2012 (the share of non-residents in the undistributed profit or the corporate loss) is estimated at ˆ34.5 mln, compared to ˆ46.6 mln for the same period of 2011. By country, the largest FDI in Bulgaria for the first half of 2012 were made by the Netherlands (ˆ163 mln), Switzerland (ˆ122.5 mln) and Russia (ˆ68.9 mln). The largest negative net flows for the period were to Germany (minus ˆ284 mln) and the UK (minus ˆ77 mln).
Source: Class (16.08.2012)

Bulgarian Economy Minister Delyan Dobrev has reshuffled the management of two major state energy corporations – the National Electric Company NEK Jsc and the Maritsa East Mines Jsc, the press service of the Economy Ministry announced. Dobrev has thus accepted a resignation submitted by Ivo Lefterov, the head of NEK. Lefterov will be replaced by Krum Anastasov. The Bulgarian Minister of Economy, Energy, and Tourism has at the same time dismissed Evgeni Stoykov, the CEO of the Maritsa East Mines Jsc (Mini Maritsa Iztok EAD), and has appointed Teodor Drebov in his position. "Evgeni Stoykov's dismissal is necessitated by the need to improve coordination and the speed of work in the company," the Economy Ministry explained. The management reshuffle has been approved by the boards of NEK and the Maritsa East Mines as well as by the management of their parent company, the Bulgarian Energy Holding (BEH). The new CEO of NEK, Krum Anastasov, is a graduate of the Sofia Technical University; he has specialized economics and management at KPMG Advisor and Eagle's Flight Creative Training Exellence Inc.. Anastasov has 21 years of experience in the energy sector, including 10 years at senior management positions. He is a former employee of Czech-owned utility in Western Bulgaria, CEZ Razpredelenie Bulgaria AD. Until now, he has been the head of the regulated market department at NEK. The new CEO of the Maritsa East Mines, Teodor Drebov, is a mining engineer who graduated from the Sofia University of Mining and Geology back in 1986. He has been the director of other Bulgarian state-owned mining companies – "Antratsit" and "Bobov Dol", and has worked at the former State Commission for Energy, and State Agency for Energy and Energy Resources. Until now, he has been a employee of the Natural Resources and Concessions Directorate at the Bulgarian Economy Ministry. Drebov has 26 years of experience in his field.
Source: Capital (21.08.2012)

Bulgaria's state energy holding company BEH plans to tap international markets with a bond issue to raise up to $300 million at the beginning of next year to refinance existing debt, its Chief Executive Mikhail Andonov said on Monday. Speaking on the sidelines of an energy event, Andonov said BEH needed to find a way to pay 195 million euros ($244 million) its NEK unit owes to a syndicate of banks led by BNP Paribas by next May. Andonov said BEH, whose assets are valued at over 12 billion levs ($7.7 billion), plans to get a credit rating this autumn which he expected to match Bulgaria's sovereign rating. He said the group aimed to issue between $250 million and $300 million worth of dollar-denominated bonds. "We are thinking U.S. dollars, as the dollar markets are quite deep and resourceful," he said. "It will be good if we can get a coupon at about 3.5 to 4.5 percent." He declined to elaborate on the maturity of the issue. In July, Bulgaria tapped global markets for the first time in 10 years, selling 950 million euros worth of new five-year Eurobonds with a coupon of 4.25 percent. Bulgaria is the European Union's poorest member state, but one of its least indebted, and is rated at investment BBB grade by Standard and Poor's, level with Lithuania and Russia, Baa2 by Moody's and BBB- by Fitch.
Source: Capital (29.08.2012)

Atomstroyexport increases the default claim to NEK for the Belene NPP project to ˆ1 bn Atomstroyexport increased its default claim to the National Electric Company (NEK) for the suspended Belene NPP project to ˆ1 bn, the Russian company announced on Tuesday. In 2006, Atomstroyexport was selected to build Belene’s two units and 13 annexes on various activities for preparation of the project have been signed since then. The default claim under the lawsuit submitted for consideration by the International Court of Arbitration at the International Chamber of Commerce in Paris, was increased on September 10. The change was motivated by the fact that the project had been suspended by Sofia and the Agreement of November 29, 2006 had expired. At the same time, NEK is still refusing to compensate Atomstroyexport the inflicted losses and damages, the Russian company explained. The claim of Atomstroyexport includes the cost of all activities under the project, the cost of the equipment with an extended cycle of production, damages, etc. The total amount of the increased default claim is no less than ˆ1 bn. NEK confirmed to klassa.bg it has received the official claim and specified that its lawyers are examining it. The company also stated that its position principally remains unchanged and it is that Atomstroyexport will be paid for all the work done until March 2012. “A claim has been submitted, as well as a letter to NEK. The claim is not in compliance with our principal agreements with Rosatom and Atomstroyexport,” Minister of Economy, Energy and Tourism Delian Dobrev commented in Israel, cited by Focus news agency.
Source: Class (12.09.2012)

Bulgarian PM: Russia launches an all-out attack about Belene The one-billion-euro claim of Russia's Atomstroyexport against Bulgaria's National Electric Company (NEC) is a blatant provocation, Bulgarian PM Boyko Borissov said during yesterday's sitting of the Cabinet. Borissov was surprised by the unexpected move of the Russian constructor of NPP Belene to inflate its claim towards Bulgaria's electric utility NEC, regarding the compensations for the cancelled project. "This is below the belt," he shouted on hearing Economy Minister Delyan Dobrev's report, and immediately urged him to contact Rosatom's CEO Sergey Kirienko. During the sitting it transpired that Russia's President Putin will make one-day visit to Bulgaria on November 9. Apart from that Putin and Borissov will definitely discuss the future of South Stream project.
Source: Standart (13.09.2012)

The New Reactor Fits Kozloduy NPP "The producer reactor for Belene NPP could be installed as Unit 7 of Kozloduy NPP," the deputy director of Russian state-run company Rosatom, Kiril Komarov stated, cited by Interfax agency. "Atomstroyexport's 1-billion-euro claim, daughter company of Rosatom, against the Bulgarian National Electric Company (NEC) does not mean that the reactor once meant for Belene NPP cannot be installed as Unit 7 of Kozloduy NPP through a suitable project," Mr Komarov commented. Mr Komarov pointed out that two reactors were ordered for Belene NPP and the second one is nearly ready while the Kozloduy NPP could take only one reactor with the construction of a new unit. According to Mr Komarov, Bulgaria has not demanded the termination of the contract for the production of the equipment for Belene NPP yet and part of the equipment is still being produced. Mr Komarov stated that due to this reason the claim of Atomstroyexport worth 1 billion euro is justified as it is based on the work accomplished, inclusive of the production of the equipment and the claim is not kind of a sanctions or fines.
Source: Standart (14.09.2012)

Bulgarian Energy Holding (BEH) announced a competition for rating agency. The mega company involves the largest state-owned energy companies - NPP Kozloduy, NEK, TPP Maritza East 2, Mines Maritsa Iztok, Bulgargaz, Bulgartransgaz and Bulgartel. The money from the issue will be used to help the two troubled companies - NEK and Bulgargaz. The announced competition for rating agency is divided into two stages - credit rating and its transformation into issue. The first phase should be completed at most for two months, and the second – for a month and a half. The competition can be entered only by agencies, which over the past three years have performed at least 3 successful agreements on rating energy companies with a turnover of at least EUR 1 billion. Furthermore, their previous guarantors must have successfully issued bonds for a minimum of EUR 250 million.
Source: Trud (17.09.2012)

Bulgaria’s BCI Cherganovo, fully-owned by a subsidiary of China’s Hareon Solar Technology, put into operation a 25 megawatt (MW) photovoltaic (PV) power plant in Bulgaria’s village of Cherganovo, the local authorities said. Investment in the plant, which was launched on Monday, totals 61.3 million euro ($80.1 million), the Kazanlak municipality said in a statement published on its website. The project was backed by the China National Development Bank. The plant covers an area of 60 hectares. Hareon Solar Technology is currently working on four PV projects in Bulgaria with a total capacity of 90 MW, the statement quoted Hareon Solar Technology vice president Lewis Liu as saying. The village of Cherganovo is located in central Bulgaria.
Source: Darik Radio (19.09.2012)

Moscow wants NEK as compensation for Belene NPP The fret over Belene NPP continued as Moscow announced that Russia has filed a lawsuit against Bulgaria’s National Electric Company (NEK) for the suspended nuclear power plant project, which could bring NEK to bankruptcy. If NEK loses the lawsuit and fails to repay its debt, the Russian state-run corporation Rosatom is ready to take steps for acquiring NEK’s assets as compensation, said an unnamed Russian nuclear sector source, cited by RIA Novosti. “Although Bulgaria’s withdrawal from the project was sanctioned by the Government and the National Assembly, this is a matter of relations between two commercial companies. It must be seen what has been ordered and paid and if Bulgaria has to pay more, this cannot be avoided. Moreover, I guess that in addition to Atomstroyexport, equipment has been ordered and paid to French and German companies,” Yordan Kostadinov, a former MP and CEO of Kozloduy NPP commented for Klassa.bg. On September 11, the Russian company Atomstroyexport (a subsidiary of Rosatom) announced that it will increase its default claim for the suspended Belene NPP project to ˆ1 bn. The Russian claim has been submitted for consideration by the International Court of Arbitration at the International Chamber of Commerce in Paris. “The amount of the claim is so high and Russia’s arguments are so serious that the legal dispute could bring NEK to bankruptcy in the end. This is not the best option for Bulgaria, but, unfortunately, it is possible,” RIA Novosti quoted the unnamed Russian source.
Source: Class (19.09.2012)

Chimco‘s first buyer owes the state BGN 30 million, because of unfulfilled privatization contract. The sum is awarded to IBE Trans, registered in New York. The state paid nearly BGN 1 million for private bailiff, who made a seizure of part of plant‘s assets in order to collect the debt. The company bought 57% of Chimco‘s capital 13 years ago for BGN 1 million. The project for restart of production attempeted in 2007 under the name New Chimco failed. Thus now, a complicated procedure for sale of assets is under way. Probably plant‘s installations will be scraped, so that on the cleared area new industrial establishment can be built.
Source: profit.bg (25.09.2012)

US Consortium Wants 'to Build' Bulgaria's Abandoned Belene NPP A largely unknown US enterprise called "Global Power Consortium" has expressed interest in actually building Bulgaria's Belene NPP, the project for a second Bulgarian nuclear plant that was abandoned by the Borisov Cabinet in March 2012. Global Power Consortium's interest in the construction of the 2000 MW Belene was made public in Sofia on Wednesday by a representative of the entity, Samuel Reddy, who said he had presented an offer to Bulgarian Minister of Economy, Energy, and Tourism Delyan Dobrev. "We are interested in the Belene NPP project. We are presently in contact with NEK (Bulgaria's National Electric Company – editor's note). We are in touch with several companies that are yet to join in the consortium. We are now developing a memorandum for consortium membership," Reddy stated in Sofia, as cited by BGNES. The contract for the construction of the 2000-MW Belene NPP was signed in 2006 with Russian state company Atomstroyexport, a subsidiary of Rosatom, by the coalition Cabinet of PM Sergey Stanishev. However, the construction made little congress because of constant price haggling between Bulgaria and Russia, and in 2009 German company RWE, which was supposed to provide EUR 2 B for the project as a strategic investor, pulled out. The Borisov Cabinet, which took over in 2009, technically continued the search for strategic investors but in March 2012 it announced it was ending the Belene NPP, labeling it "economically unfeasible". According to Samuel Reddy, the alleged Global Power Consortium is currently negotiating with Russian state company Atomstroyexport, which was supposed to build the NPP in Belene. He added that Bulgaria's NEK should first create a project company to assume the assets and liabilities of the Belene project. "We aren't seeking the financial guarantees of the Bulgarian government for this project. It will be 100% guaranteed with the funding of the US companies involved," the GPC representative promised. He added the consortium will seek to acquire the Belene NPP assets at market prices. Bulgaria's government is currently tangled up in a EUR 1 B dispute with Russia over the termination of the Belene project. It is unclear how the GPC offer to "build" the NPP will affect the dispute. In the middle of July 2012, Russia's state nuclear company Atomstroyexport took Bulgaria's NEK to an arbitration court for EUR 58 M over delayed payments for its work on two nuclear reactors. The next day the Bulgarian company said it is ready to strike back with a EUR 61 M counter claim against Atomstroyexport over delayed payments for purchases of old equipment for the plant, worth about EUR 300 M. Three months later, on September 11, Rosatom Corp., Russia's state-run nuclear company, increased a claim against Bulgaria's National Electricity Co. from EUR 58 M to EUR 1 B. Atomstroyexport, a unit of Rosatom, said it increased its claim filed with the International Court of Arbitration in Paris in 2011 to cover construction work and production costs of the two canceled nuclear reactors. After it was first started in the 1980s, the construction of Bulgaria's second nuclear power plant at Belene on the Danube was stopped in the early 1990s over lack of money and environmental protests. After selecting the Russian company Atomstroyexport, a subsidiary of Rosatom, to build a two 1000-MW reactors at Belene and signing a deal for the construction, allegedly for the price of EUR 3.997 B, with the Russians during Putin's visit to Sofia in January 2008, in September 2008, former Prime Minister Stanishev gave a formal restart of the building of Belene. At the end of 2008, German energy giant RWE was selected as a strategic foreign investor for the plant. The Belene NPP has been de facto frozen since the fall of 2009 when the previously selected strategic investor, the German company RWE, which was supposed to provide EUR 2 B in exchange for a 49% stake, pulled out. Shortly afterwards BNP Paribas SA, France's largest bank by market value, who was hired by the previous Socialist government to help fund the construction of Belene, ditched the project in February 2010. RWE's departure from Bulgaria's new Belene nuclear plant put extra pressure on the new center-right government to find new shareholders while it redefines the scope of investment it needs. NEK initially held a 51% stake in the scheme and Borisov's government planned to cut its shares in the project to 20-30%, which will still allow the country to keep its blocking quota. Atomstroyexport was contracted in 2005 to build the plant for an initial 4 billion euros, but the costs later rose. After failing to agree on its cost and find Western investors however in March 2012 Bulgaria decided to abandon plans to build its second nuclear power plant.
Source: Capital (27.09.2012)

US Global Power Consortium revives the Belene NPP project “In keeping with our pledge to inform the public of any prospective investors willing to build the Belene NPP with private capital, we now announce that the US Global Power Consortium has declared its interest in carrying out the project under those terms”, said Delian Dobrev, Minister of Economy, Energy and Tourism, at the start of an Economic Policy, Energy and Tourism Committee sitting. Samuel Reddy of Global Power Consortium, who was also present at the meeting, laid out the terms of the proposal. “The Belene NPP is of interest for us. Talks with the state National Electric Company are underway. We are currently working on a consortium membership memorandum, while at the same time keeping in contact with several potential partners. We intend to follow a procedure under which NEC is supposed to set up a project company where all initial assets and liabilities related to the Belene NPP will be transferred. Being fully aware of the complexity of such a process and the project itself, we are trying to analyse the project from every possible angle,” Reddy said. “We are also in the first stages of talks with the Russian company Atomstroyexport with the intention of moving to active partnership after the memorandum is finalised. We are hopeful that both companies will be able to find the right solutions to all their issues.” “We are not looking for any financial guarantees by the Bulgarian Government in this project. It will be 100% backed by all US companies involved. Assets acquired from NEC will change hands for fair market value,” Reddy added.
Source: Class (27.09.2012)

Bulgaria Demands EUR 200 M Guarantee from Mysterious Belene Investor The Bulgarian government has demanded a EUR 200 M guarantee from the largely unknown investor that emerged on Wednesday with the proposal to fulfill the country's abandoned Belene Nuclear Power Plant project. The guarantee should be paid to Bulgaria's National Electricity Company (NEK). The government has also listed seven other necessary conditions for the potential investor. On Thursday, the Bulgarian Parliament is expected to authorize the government to negotiate with the investor, the Global Power Consortium. Bulgarian Prime Minister Boyko Borisov has declared that he would only negotiate with the consortium if it leaves a EUR 200 M deposit, local media say. The largely unknown US enterprise expressed interest Wednesday in building Bulgaria's Belene NPP, the project for a second Bulgarian nuclear plant that was abandoned by the Borisov Cabinet in March 2012. The Global Power Consortium's interest in the construction of the 2000 MW Belene was made public in Sofia by a representative of the entity, Samuel Reddy. A total of nine companies are believed to be involved in the entity, with their names still unknown. Bulgaria's government is currently tangled up in a EUR 1 B dispute with Russia over the termination of the Belene project. It is unclear how the GPC offer to "build" the NPP will affect the dispute.
Source: Capital (28.09.2012)

PM Borissov: Bulgaria will diversify energy supply within 3-4 years “I am sure that Bulgaria will succeed in diversifying its energy supply within 3-4 years,” PM Boyko Borissov said in an interview for Euronews. He explained that Bulgaria has learned its lesson from the gas crisis in January 2009 when Russia stopped its gas deliveries to Europe because of a dispute with the Ukraine and “Bulgaria was one of the most affected EU countries. Then, I was Mayor of Sofia. The temperature was between 15 and 12 degrees below zero. We spent some 10-15 days without gas and nobody helped us,” recalled PM Borissov. This is why we are building now a gas interconnector link with Romania. A similar pipeline with Greece is already at a very advanced stage and will be completed within a month or two. Construction of interconnector links with Turkey and Serbia is expected to be launched. However, the greatest source of energy diversification for Bulgaria are the oil and gas deposits in the Black Sea,” explained PM Borissov. He added that Bulgaria will also rely on the route of the Russian South Stream gas conduit and on a number of other projects for the diversification of gas supply to Bulgaria. “It is very important that the Turkish TANAP gas pipeline reaches Bulgaria and that Nabucco-West and the South East Europe Pipeline move closer to Europe. The second route - the Trans-Adriatic gas pipeline – is a connection to Italy. That is why, we are trying to do everything possible so that Nabucco-West and the South East Europe Pipeline to move ahead,” specified PM Borissov. He added that Bulgaria is cooperating with the European Commission in its investigation against Gazprom on breach of competition rules on the European market.
Source: Class (28.09.2012)

Energy Minister Inquires about Belene NPP Investor Bulgaria’s Minister of Economy and Energy Delyan Dobrev sent letters of inquiry to the US Energy Department. He requires more information about the US company Global Power Consortium Ltd., a candidate investor in the Belene NPP project. The Bulgarian government has already declared that it will start negotiations with the investor only after the company confirms that its intentions are serious. Global Power, in its turn, has declared before the National Electrical Company and the MPs of the parliamentary economic committee that it has investment interests in Belene project. So far it has become known that the consortium is based in New York and is represented by Samuel Reddy. Its major shareholder is Quantum Group Inc., USA. What are the Western European and American companies behind the Global Power Consortium will become clear after NEC and Global Power Ltd. sign an agreement, Bogomil Manchev, CEO of Risk Engineering and consultant of the US investors said.
Source: Standart (29.09.2012)

Bulgaria’s economy is 65% more energy-intensive than the EU average “The energy intensity of our economy is 65% higher than the EU average. Therefore, the potential for development in this area is huge,” said Delian Dobrev, Minister of Economy, Energy and Tourism. “The country’s energy strategy projects a 50% reduction of energy intensity by 2020, compared to 2005. This will lower energy consumption by 15%, compared to 2010. Bulgaria’s national target in the Energy Efficiency Plan projects that by 2016, we should achieve energy savings amounting to 9% of the final energy consumption. Therefore, energy efficiency is a priority for the competitiveness of our economy and a key factor for raising the living standards of people,” Delian Dobrev commented at a meeting with the Club Diplomats-Economists, organised by the Centre for Economic Development. The meeting focused on Bulgaria’s power engineering. “Operational Programme Competitiveness is also focused on energy efficiency,” added Dobrev. He presented to the participants in the forum the Energy Efficiency and Green Economy scheme, implemented by the Ministry of Economy, Energy and Tourism jointly with the European Bank for Reconstruction and Development (EBRD). A total of ˆ150 mln has been earmarked for projects under this scheme within OP Competitiveness and another ˆ150 mln will be ensured by a credit line from EBRD for bridge financing of projects. At present, the scheme is open for applications. The construction of gas interconnections with neighbouring countries was also among the issues discussed by Minister Dobrev and the diplomats-economists. He pointed out that this is an important factor for the diversification of energy sources.
Source: Class (05.10.2012)

The RES sector stages a protest against high fees for the third time The RES sector staged a protest against the high fees for the third time on Monday, after the energy regulator decided to impose charges for their power stations accessing the electrical network of the country. This time, the number of protesters was about 150. The charges the industry is protesting against reach 40% of the revenue it gets from long-term contracts for the purchase of electricity. According to Nikola Nikolov from the Bulgarian Photovoltaic Association, besides the Supreme Administrative Court, which has been approached in order to determine whether the charges imposed by the regulator are legitimate, the renewable energy sector is planning to approach the Commission for Protection Against Discrimination and The Commission on Protection of Competition as well. Nikolov said that the statements of the Regulatory Commission Chairman, Angel Semerdzhiev, who said that the country's energy system can continue to function normally even if all RES plants are stopped completely, clearly demonstrate his attitude towards renewable energy. Through its actions, the chairman of the energy regulator undermines the country's efforts to develop the renewable energy sector. According to Nikolov, the price of electricity can again increase sharply because, after January 1, thermal power plants will have to pay quotas for the carbon dioxide they emit into the air. These fees can result in an increase of over 50% of the cost per megawatt hour of electricity produced by thermal power plants. After the protesters chanted "Resignation", "Mafia!" and "Annulment" in front of the regulator's building, they headed again for the former Communist party headquarters, which is located just in front of the CM.
Source: Class (09.10.2012)

Bulgaria's National Electric Company (NEK) will start renegotiating the provisions of the long-term contracts with thermal power plants AES Galabovo and Contur Global Maritsa Iztok-3 to achieve lower prices of the electricity produced by the two US-owned TPPs. Angel Semerdzhiev, Chair of the State Commission for Energy and Water Regulation (DKEVR), made clear Tuesday that the talks were expected to start in the next few weeks. The long-term contracts with the two TPPs were one of the reasons behind the 13% increase in electricity prices from July 2012. Semerdzhiev explained Tuesday that Bulgaria's Energy Act made it possible to renegotiate the provisions of long-term contracts. The DKEVR Chair added that there was plenty of experience that could be used to solve the matter and to ensure the development of the market. He added that apart from the price restrictions, the contracts also contained restrictions for the electricity quantities that could be traded on a future energy exchange and the matter was also the be discussed. The main negotiating parties on behalf of the state will be NEK and the Ministry of Energy, Economy, and Tourism, which is in charge of the state-owned power grid operator. Bulgaria's energy watchdog will also participate in the talks because it will have to approve the changes afterwards.
Source: Capital (10.10.2012)

NEC starts renegotiations with Maritsa Iztok 1 and 3 The National Electricity Company (NEC) is starting negotiations with power plants Maritsa Iztok 1 and 3 to renegotiate the long-term contracts for the purchase of electricity, Chairman of the State Energy and Water Regulatory Commission (SEWRC), Angel Semerdzhiev, confirmed during the regular session of the Commission on Tuesday. Both plants sell electricity to the public supplier at prices of over BGN 120/MW. According to Semerdzhiev, this could lead to a reduction of electricity prices by the middle of next year. There is a text in the law which allows negotiation talks to begin when there are long-term contracts which may be in conflict with EU directives or practice, or other additional requirements imposed by the market, the Chairman of SEWRC explained. Semerdzhiev explained that Bulgaria is not the only country which has faced "such a situation" and added that the state will share experience, "including with countries like Poland." "There was such a case in Hungary. The phenomena in our country are similar. There is enough experience which can be obtained. We have used even the slightest possibility for corrections up to now," commented Semerdzhiev. In connection with the forthcoming heating season, Angel Semerdzhiev assured that there are no concerns about the readiness of the energy companies for the winter.
Source: Class (10.10.2012)

Russian Company Bids in Kozloduy NPP Tender Russian company Rosatom Overseas has submitted documents for participation in the tender for elaboration of the Environmental Risk Assessment (ERA) in connection with the construction of Unit 7 of Kozloduy NPP, a source well informed about the Bulgarian nuclear industry informed the RIA Novosti. Not long ago, the project company Kozloduy NPP - New Capacities invited a tender for the elaboration of the ERA for the construction of Unit 7 in Kozloduy NPP. The information was confirmed by the Executive Vice President of Rosatom Overseas Leos Tomicek. “It is true that we have recently submitted a bid for the invited tender on the environmental risk assessment act for the new unit of the Kozloduy nuclear power plant. Bulgaria is our traditional partner in nuclear power engineering that is why our interest to this kind of projects is understandable,” Tomicek said. After the Belene NPP project was frozen the Bulgarian government has an idea to install the reactor, which Atomstroyexport and its subcontractors originally built for the Belene nuke, at Unit 7 of the Kozloduy plant. The new facility should be a cross between a Russian reactor and a turbine generator designed using Western technology. Experts recon that Unit 7 of the Kozloduy nuke may be set in operation by 2024.
Source: Standart (11.10.2012)

Insurance company Armeec entered the Top 100 ranking of the largest insurance companies in Southeast Europe, taking the prestigious 21st spot. The ranking is done in three categories - companies, insurers and banks. A total of 21 Bulgarian insurers ranked, among them DZI General Insurance, Bulstrad, Lev Ins, Allianz Bulgaria, Bul Ins, UNIQA Insurance, Euro Ins , Energia and Victoria. 13 Bulgarian companies are among the leaders of the South-Eastern Europe in the SeeNews TOP 100 - Lukoil Neftochim occupies the prestigious 3rd place in the overall ranking, which gives it the first place in Top 100. The 6 th place in Southeast Europe is taken by Aurubis Bulgaria. The Top 100 also includes NEK, Bulgargaz, CEZ Electro Bulgaria, Mobiltel and others. Top 100 banks in Southeastern Europe include 18 Bulgarian lenders. UniCredit Bulbank is 7th and the rest that enter the Top 100 are DSK, UBB, Raiffeisenbank, FIB, Post Bank, Corporate Commercial Bank, SG Expressbank, Central Cooperative Bank.
Source: Standart (12.10.2012)

Power distributor Energo-Pro Bulgaria, part of Czech energy provider Energo-Pro, has applied for anti-trust clearance for plans to acquire 100% of local hydro power producer Energia Holding. The deal is expected to impact the domestic wholesale market for electricity production and distribution. Energo-Pro is a private Czech energy provider focused on Central and Eastern Europe, the Black Sea region and the Caucasus. It owns and operates eight hydro power plants in Bulgaria. After the fourth of October the company was transferred fully to Holding electric Bulgaria. If the deal is concluded successfully the Czech company is to become the biggest owner of water power stations in the country. Energia Holding consists of six companies with a total of 13 hydro power stations.
Source: Capital (16.10.2012)

Bulgaria will sell the state-owned 33% stakes in two units of power distributor CEZ on the Bulgarian Stock Exchange (BSE) starting October 29, according to the press office of the Privatization and Post-Privatization Control Agency (PPCA). The PPCA will offer 63 624 shares in power distributing unit CEZ Razpredelenie Bulgaria AD and 1650 shares in grid operating unit CEZ Electro Bulgaria AD with a par value of BGN 10 each. Investment intermediary Central Cooperative Bank AD will manage the sale. At the beginning of October, Bulgaria sold the bulk of its 33% stakes in the two units of power distributor Energo-Pro, Energo-Pro Grid AD and Energo-Pro – Sales AD. The public share offering on the BSE raised BGN 68 M. Energo-Pro acquired the two Bulgarian power distribution companies from E.ON in June, 2012.
Source: Capital (19.10.2012)

A flood of dismissals is about to hit Bulgaria's national electricity transmission company after a discrediting letter surfaced, allegedly reviving the nuclear power plant project at Belene. Marin Angelov, head of Trafelectroinvest company with NEK, was the first to get kicked out on Thursday. His dismissal came shortly after the right-wing opposition alleged the government has not halted the construction of Belene nuclear station and the project is in full steam. They based their allegations on a letter, which they obtained, by the national electricity transmission company NEK to the mayor of the Danube town of Svishtov Stanislav Blagoev regarding the construction of high voltage lines needed "to ensure the connection of future facilities that will be built on the site of NPP Belene." The document is dated October 8, 2012. "The lines are part of Belene infrastructure and will connect the plant with the energy system of the country," Martin Dimitrov, co-chairman of the Parliamentary Group of the Blue Coalition, said. "Marin Angelov was dismissed because he sent this letter. Anyone who has anything to do with this will have to face the music," Energy Minister Delyan Dobrev warned on Thursday. "This letter is a clear sabotage against the government. I find it hard to believe there are still people who are not aware this project is a thing of the past," he added. The minister went as far as to thank the right-wing opposition for alerting the government about this letter. Bulgarians will probably vote on the future of its Belene nuclear station before the end of the year, but the right-wingers says the referendum will just be a tool to legitimize the nuclear plant construction. The referendum was initiated by the Socialists and backed the ruling party. Bulgaria decided to abandon plans to build its second nuclear power plant in March this year after failing to agree on its cost with Russian company Atomstroyexport, a subsidiary of Rosatom, and find Western investors. Bulgaria's government is currently tangled up in a EUR 1 B dispute with Russia over the termination of the Belene project. Last month recently registered US consortium Global Power Consortium expressed interest in taking over the project to install two 1,000 megawatt nuclear reactors at the Danube River town of Belene and build it without state funds or guarantees. The companies behind the consortium however are yet unknown.
Source: Standart (19.10.2012)

NEK sells 325 megawatts of electricity for export National Electricity Company (NEK) wants to sell 325 megawatts of electricity for export in November. According to the report the electricity is for export to Greece, Serbia, Romania and Republic of Macedonia. NEK will negotiate with each candidate separately. The primary evaluation criterion was the highest offered price. NEK also reminded that prior the price is taken into account the prices for access and transmission, as well as any additional fees set by the energy regulator. These are additives for green and high-efficiency energy, as well as the additive for irrecoverable costs included in the price for transmission and are paid by all users. Together these charges burden the cost by EUR 17.50 per megawatt hour, to which is added the charge for commercial transfer rights, which vary from EUR 5.34 to 9.52 per megawatt hour. It is these charges that making the interest in auctions organized by NEK too low, said the chairman of the Association of Electricity in Bulgaria Vladimir Dichev.
Source: Capital (24.10.2012)

Nearly three years after Bulgaria cancelled relations with one of the leading rating agency Fitch-it is to work for our country again. Now it is hired by the Bulgarian Energy Holding, which needs rating in order to issue bonds to the amount of EUR 250 million on international markets. With it the company plans to cover the remaining debt of NEC, its subsidiary, which is assessed to EUR 195 million and is taken for the project "Belene”. Its maturity expires at the end of May next year. BEH officially stated that Fitch is the chosen candidate. The reason is the lowest price offer, which was the basic requirement. BEH’s intention to issue bonds on the international markets became clear in September. The bonds are to the amount of EUR 250 million, the term is 5 years.
Source: Capital (26.10.2012)

Atomstroyexport Said to Owe Bulgaria Money over Belene NPP Documents show that Russian company Atomstroyexort actually owns Bulgarian National Electric Company (NEK) funds for the frozen joint Belene NPP project. This was claimed Tuesday by Bulgarian Public Financial Inspection Agency's head Temenuzhka Petkova at a sitting of an ad hoc parliamentary committee on the project. According to Pektova, Atomstroyexport owes Bulgaria at least EUR 44 M, and in addition has to certify with documents it has performed other due payments. The payments have to do with Atomstroyexport's obligation, taken back in 2007, to buy back old equipment installed at the Belene site, which was not going to be used in furthering the project. Petkova said that as things stand now, the Russian company directly owes Bulgaria EUR 4 M, and has to buy back additional old equipment worth some EUR 40 M. This news comes in the wake of repeated claims by the Russian company that Bulgaria has to pay it remuneration for already-built equipment, as well as indemnities for choosing to freeze the project last spring. Over the summer, Atomstroyexport filed an EUR 1 B claim against NEK at the International Court of Arbitration in Paris, which Bulgarian authorities have seen as unfounded.
Source: Standart (31.10.2012)

The revenues of the Bulgarian Energy Holding (BEH) JSC for the first nine months of 2012 were double the amount for the same period of last year, showed the published financial report of the Finance Ministry. The gross profit for January-September is almost equal to the revenues, totaling BGN 560.86 mln, while last year’s profit before taxes was BGN 235.1 mln. The gross profit of Bulgartransgaz for the period amounted to BGN 94 mln, up from BGN 83 mln last year. The Kozloduy NPP concluded the first nine months of 2012 with a pre-tax profit of BGN 142.6 mln, compared to BGN 178.2 mln for the same period of last year. The company’s revenues amounted to BGN 655.1 mln, registering a slight decrease of 2.4%, compared to the same period of 2011. Proceeds from electricity accounted for the largest share (95%) in the structure of revenues from the overall operation of the plant. These decreased by BGN 25.75 mln (4.03%), mainly due to the 3% drop in the electricity sold during the period, compared to 2011. The costs incurred for the activities of Kozloduy NPP amounted to BGN 515.4 mln. For the first nine months of 2012, another company of BEH – the National Electric Company (NEK) accumulated a loss of BGN 77.2 mln, compared to a profit of almost the same amount for January-September 2011. This is due to the low selling wholesale prices of electricity on the regulated market, as the company has already warned. However, after the hike of electricity prices as of July 1, 2012, NEK posted a profit for Q3 of the year, as per preliminary data.
Source: Trud (05.11.2012)

Three companies want to value the assets and liabilities of NPP Belene, NEK said. Among the candidates are Ernst&Young Bulgaria, Bright Consult Ltd. and unification Mashelektroproekt and Partners. The contract is for the evaluation of the separate assets and liabilities of the Belene project so that they are ready to be divided from NEK's. At present it is not clear what the purpose of the division of Belene from the electric company is - termination or separate development of the nuclear project. NEK will pay half a million BGN to the contractor to finish the task for two months.
Source: Sega (14.11.2012)

BEH CEO: Gas Prices for End Consumers to Go down by 10% The price of natural gas in Bulgaria will go down by over 20% after the latest contract with Russian energy giant Gazprom, says the CEO of the Bulgarian Energy Holding, BEH, Mihail Andonov. Speaking Saturday for Darik Radio, Andonov noted the price reduction would be in the vicinity of 22% - 23% under the new contract, but this would not be the reduction for the end consumer. The contract with Gazprom for natural gas supplies was signed Thursday in the presence of Gazprom CEO, Alexey Miller. "Bulgargaz sold gas at a price below the cost it was purchasing it for, but it is regulated by the State Commission for Energy and Water Regulation, DKEVR. I expect the price for end consumers to go down by 10%, which will also affect the prices of electricity and heating," said the BEH CEO. Earlier Saturday, Bulgargaz Head, Dimitar Gogov, announced the reduction for end consumers will be about 6% - 7%, but Andonov noted Gogov was protecting the interests of his company and reiterated the country has an energy watchdog. He was firm consumers must pay their bills regularly and on time, otherwise the achieved discount would "melt" in a year and a half.
Source: investor.bg (19.11.2012)

The National Electricity Company (NEK) and the Electricity System Operator (ESO) are at a loss, but prepared for winter regardless, the directors of the two companies stated at a sitting of the parliamentary Economy Committee. CEZ reported that it has 40 emergency teams, 70 cross-country vehicles, and has begun introducing satellite phones. There is so far no final report by investigative authorities on what the reason for the blast at the power substation in Burgas is.
Source: Darik Radio (23.11.2012)

EU opens investigation into Bulgarian Energy Holding for possible abuse of dominant position The European Commission said on Monday it has launched an investigation whether state-run Bulgarian Energy Holding (BEH) is abusing its dominant position on the wholesale electricity market in Bulgaria. “The Commission has concerns that BEH might be hindering competition on wholesale electricity markets in Bulgaria and neighbouring member states through territorial restrictions,” it aid in a press release published on its website. The Commission will investigate certain provisions in electricity supply agreements entered into by subsidiaries of BEH, which include clauses, prescribing where the electricity has to be delivered. These provisions may constitute territorial restrictions and thus both hinder competition and undermine the integration of EU electricity markets. BEH (www.bgenh.bg) incorporates the assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, the National Electricity Company and its wholly-owned subsidiary Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines.
Source: Capital (04.12.2012)

The Energy Exchange to be launched in 2014 The Bulgarian Energy Exchange will be ready by 2014. We had set ourselves a piece of hard work, but it became clear that its implementation will be very difficult, Deputy Minister of Economy, Energy and Tourism Evgenia Haritonova said during the Energy Development in the Changing World Forum. According to her, in accordance with the amendments to the Energy Act, and, before the launch of the Exchange, a number of requirements should be met: the 20 kV network has to be liberated and all producers of goods and services have to come out on the market. They should use energy at "payable prices", since "payable prices" mean a competitive industry, Haritonova said. She reminded that, through the changes to the Energy Act, only consumers connected to the low voltage network are protected. In the near future, everyone connected to the medium voltage network should find suppliers and work on the open market. The Deputy Minister of Economy reminded that, currently, the separation of the Electricity Operator and the National Electric Company is still undergoing as part of the condition for the implementation of the Third Energy Package. As a necessary part of the process of the Third Energy Package's implementation and the Electricity Exchange's launch, Haritonova noted the need to ensure complete energy independence of the energy regulator. This is necessary in order to increase market transparency, so that there is no reason to accuse respective companies, as well as other players on the market, of non-transparency. In this connection, Haritonova also reminded that the main objective of the Energy Act is to improve consumers' protection.
Source: Class (12.12.2012)

Some 30% rise in the price of electricity from coal plants foreseen Approximately a 30% rise in the price of electricity from coal plants is expected. This will happen as early as next year, energy expert Ivan Hinovski said on Wednesday on Bulgaria on Air TV. Restrictions on greenhouse gas emissions are another reason for this. According to him, the price of the electricity mix will increase by at least 8%. Bulgaria's energy strategy, which was established two years ago, is not up to date and has to be revised in accordance with the current situation. According to the energy expert, there should be a choice and customers should be able to buy electricity from various suppliers. In the field of gas, however, things are much worse because the public provider is only one, Ivan Hinovski explained. It is said that the second entity, with which gas quantities can be agreed, is Overgas, but I'm not sure how soon that can happen, he commented. Regarding gas production in Bulgaria, Hinovski explained that plans, schedules and forecasts for gas production in Bulgaria are to be reported by the company Total.
Source: Class (13.12.2012)

Temporary Parliamentary Commission investigating corruption at the highest levels of government began to examine contracts for the supply of expensive limestone of Kaolin, associated with Ivo Prokopiev, for TPP Maritsa East 1 and TPP Maritsa East 3. The plants may be owned by U.S. companies, Global Loop and AES, but their electricity is purchased from the state-owned NEK on long-term contracts since the time of Ivan Kostov’s cabinet. The head of energy regulator Angel Semerdzhiev said to the anti-corruption commission that the state-owned TPP Maritsa East 2 finds and buys limestone for its sulfur abatement systems at lower prices than TPP Maritsa East 1 and TPP Maritsa East 3. Contracts with Kaolin and the specific prices were never announced to lawmakers and the media because of commercial confidentiality. State Energy and Water Regulatory Commission announced that it will begin a regulatory audit of TPP AES Maritza East 1 nad TPP Contour Global Maritsa Iztok 3 because, according to new texts in the Energy Act, the terms of these contracts can be changed by the regulator, if contrary to European law.
Source: econ.bg (15.12.2012)

Turkish project for a TPP near Tsarevo suspended “The project for the construction of a thermal power plant in the region of the Turkish border near the town of Igneada and south of the Bulgarian municipality of Tsarevo has been stopped,” said the Mayor of Igneada Tahir Yashak, quoted by Darik radio on Monday. He and his colleagues from the municipalities of Vise and Demirkyoy stated their flat disagreement with the energy projects. The mayors explained that the construction of a thermal power plant near Igneada is not a project of the Government but of private investors. According to Yashak, the Turkish Minister of Ecology firmly backs the protesting citizens and has refused to approve the project. Therefore, it is no longer on the agenda. The Turkish mayors refused to discuss the eventual construction of a nuclear power plant because this is an official government policy of Turkey and should be discussed at another level. However, the guests explained that, so far, no one has notified them about the intention of the Turkish Government to build a nuclear power plant near Igneada.
Source: Class (18.12.2012)

A court in the Bulgarian city of Varna has declared local chemical products maker Polimeri [BUL:51P] insolvent, the company said on Tuesday. The court approved on December 12 an insolvency request against Polimeri filed by the Electricity System Operator (ESO), the chemical company said in a statement to the Sofia bourse. A meeting of the company’s creditors is scheduled for January 29, the statement added. Polimeri's liabilities to ESO amount to some 36,000 levs ($24,200/18,400 euro). Last year, the chemical producer posted non-consolidated net loss of 10.04 million levs.
Source: Capital (19.12.2012)

The state-run Bulgarian Energy Holding (BEH) expects to post a profit of some 36 million levs ($24.4 million/18.4 million euro) this year on gross revenue from sales of 6.46 billion levs, the company’s chief executive officer said on Thursday. The company plans a bond of no less than 350 million euro ($465.1 million) in 2013 and expects to be assigned a credit rating by Fitch by the middle of January before proceeding with the issue. It has not been decided how the proceeds will be spent, Mihail Andonov told a press conference in Sofia. BEH (www.bgenh.bg) incorporates assets of Bulgaria's sole nuclear power plant Kozloduy, gas monopoly Bulgargaz, gas transmission system operator Bulgartransgaz, telecommunications operator Bulgartel, NEK and its wholly-owned system operator Electricity System Operator, coal-fired power plant Maritsa East 2 and the Maritsa East coal mines. The company’s assets equal 12.8 billion levs while its capital is 8.84 billion levs. About 22,600 people work for BEH.
Source: Capital (21.12.2012)

Japanese Companies to Build Smart Networks for NEC Japanese companies Mitsubishi and Hitachi will construct the so-called smart networks along the Bulgarian power distribution mains. The step was negotiated during the visit of Bulgaria’s minister of economy, energy and tourism, Delyan Dobrev, to Japan, the CEO of the Bulgarian Energy Holding (BEH), Mihail Andonov, informed. “Negotiations are underway between the National Electric Company (NEC), the Electricity System Operator and the Japanese companies in order to specify when and how the work on the pilot project would start. Most probably the site of the project will be northeastern Bulgaria where wind farm Kaliakra Wind Power, owned by Mitsubishi Heavy Industry is located,” Mr Andonov stated. The purpose of the smart networks is to reduce the power losses along the power mains. The networks will also make sure that the generated at a certain moment power corresponds to the consumption of power in the country and the power export. The BEH and its daughter company NEC have already started negotiations with banks for revision of the credit conditions and renegotiations of the received credits.
Source: Standart (21.12.2012)

Bulgaria Power Exports Shrink by 21% "Bulgaria exported 21% less power end-November, 2012, compared to the same period of 2011," Ivan Yotov, CEO of the Electricity System Operator (ESO) stated. The total amount of exported power till the beginning of December, 2012 is 7.7 billion kilowatt/hours while in 2011 it was 9.752 billion kilowatt/hours. The reason for the decreased amount is the general stagnation on the electricity market in the Balkan region which to a great extent refers to the financial problems in Greece. Relatively warm weather also reduces power consumption, Yotov explained. There have been certain problems in payments to the Electricity System Operator on the part of the Greek operator. “Currently our company even had to wait for three months to receive the money,” he said. Yotov added that the price of power on the international markets has fallen. During the tenders on the capacities of the power grids the prices decreased three and half times, which will also have a negative effect on the ESO revenues from fees. At the same time this will provide an opportunity for setting more advantageous prices of power generated in Bulgaria, which will be a benefit for the National Electric Company and Electricity System Operator and power plants.
Source: Standart (21.12.2012)