Bulgaria Govt Renewable Energy Plans Hit a Snag

The adoption of legal amendments that introduce grid access charges on all operating renewable energy producers in Bulgaria have been delayed. File photo

Attempts to turn Bulgaria's government policy on renewable energy into a bill have been temporarily blocked under public and opposition pressure.

Opposition lawmakers walked out on the Wednesday meeting of the parliamentary economy committee, delaying the adoption of legal amendments that introduce grid access charges on all operating renewable energy producers.

The move comes just days after ambassadors to Sofia of thirteen European states, China and Korea voiced serious concerns over Bulgaria's government policy on renewable energy.

In a letter to Economy and Energy Minister Delyan Dobrev, obtained by the opposition Glasove newspaper, the envoys protested vehemently against the electricity regulator's decision to introduce grid access charges on all operating renewable energy producers.

According to them with this decision Bulgaria risks to drive away foreign companies, considering investments in the country in many sectors, not only those dealing with renewable energy.

Meanwhile the President of the European Bank for Reconstruction and Development (EBRD) Suma Chakrabarti voiced concerns that those charges have been applied retroactively and without any prior consultations with the sector stakeholders.

"These access charges will mean that most currently operating renewable energy generators will immediately become unviable and will be unable to repay their loans," reads Chakrabarti's letter to Bulgaria's Prime Minister Boyko Borisov.

"This raises broader concerns among all investors about the reliability of contracts and the predictability of the Bulgarian business environment," it points out.

Bulgarian renewable energy producers have threatened to notify the European Commission that the recently introduced grid access fee constitutes unregulated state aid to power distributors.

Renewable energy producers and industry representatives have staged a number of protest rallies over the grid access fee in front of the headquarters of the State Commission for Energy and Water Regulation (DKEVR) in Sofia.

The protesters demand the resignation of DKEVR Chair Angel Semerdzhiev from the parliamentary committee tasked with supervising the watchdog's activity.

Renewable energy producers say the fee for accessing the networks of the three power distributors operating in the country will deprive them of 10-40% of their revenues and will lead to numerous bankruptcies.

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