Renewable energy policy

Bulgaria has committed to phasing out coal by 2038, a reminder included in the European Commission's annual report on energy across the EU and individual member states. The report highlights that through the Just Transition Fund, Bulgaria could access 1.12 billion euros to support the social and economic impacts of closing coal plants in Kyustendil, Pernik, and Stara Zagora.

To put out the fires lit by the heatwave and July’s wide fluctuations in the wholesale price of current for a fortnight, the government has succeeded in keeping the electricity kilowatt-hour below 15 cents with the support of power generators and the big discounts offered by the PPC.

At 1.6 cents per kilowatt hour, the extraordinary support on electricity bills for August consumption is set at 1.6 cents per kilowatt hour, the Ministry of Environment and Energy announced.

Thus, the final price for the majority of consumers (which depends on the tariff of each provider) is formed below 15 cents per kilowatt hour.

The amendment imposing a special levy on natural gas power plants, which is set at 10 euros per megawatt-hour, has been submitted to Parliament.

Revenues from the special levy will be used to fund a subsidy on household electricity tariffs in August, the amount of which will be finalized by the end of the week, to keep final consumer prices close to 15 cents per kilowatt-hour.

Electricity consumers should expect a tough fall in terms of prices, after some relief provided thanks to state subsidies in August rates.

Public Power Corporation's green tariff for July rose 14% compared to June, versus a 22% increase in the wholesale price of electricity during the same period.

For July, the Public Power Corporation (PPC) is offering the second-largest discount since the introduction of special tariffs earlier this year, keeping green electricity rates low for most consumers. The PPC’s 31% discount absorbs a significant portion of June’s 22% increase in wholesale prices, resulting in a household electricity rate of 0.1355 euros per kilowatt-hour.

The new natural gas power plant being developed by a joint company of Motor Oil and GEK Terna is expected to be put into trial operation in the summer, while its commercial operation is expected by early fall, Motor Oil sources said in the context of the general meeting of shareholders. The new unit has a capacity of 877 megawatts and a cost of 375 million euros.

The Bulgarian Energy and Water Regulatory Commission (EWRC) anticipates an average electricity price increase of 1.34% starting July 1, while the price of hot water and heating is expected to decrease by an average of 8.44%. Final decisions will be made at the end of the month, with an open meeting scheduled for next week to discuss these forecasts.

June is seeing major hikes in the "green" electricity rates, after the wholesale price jumped in May to 81.08 euros per megawatt-hour from €60.11/MWh in April.