Friday, May 7, 2010

Bulgarian Law on Renewable and Alternative Energy Sources and Biofuels

The Renewable and Alternative Energy Sources and Biofuels Act (RAESBA) was adopted on 7th June 2007 by the National Assembly and was promulgated in the Official Gazette, No 49 of 19.06.2007.
The Act regulates the public relationships related to encouraging the production and use of electric, heat and/or cooling energy from RES and AES, as well as production and the use of biofuels.
To encourage the electricity generation from RES, the following is planned:

  • Purchasing at preferential prices of the RES electric energy, with the exception of HPP electricity with installed capacity of over 10 MW; 
  • Mandatory buy of the electric energy generated from renewable Sources of Energy", with the exception of HPP electricity with installed capacity of over 10 MW;
  • The term of validity of the long-term contracts shall be 25 years – for the electricity generated form geothermal and solar energy and respectively 15 years – for the electricity generated from hydroelectric power plants with installed capacity less than 10 MW, as well as for the electricity generated from other renewable sources;
  • Obligatory and priority connection of each producer of electric energy from RES and AES to the closest distribution or transmission enterprise.
The Act also introduces an incentives mechanism for the production of heat and/or cooling energy from RES by issuing certificates of origin.
The key mechanism for stimulating the use of biofuel in the transport sector is the introduced obligation of all producers and importers of liquid fuels for transport needs to market fossil fuels blended with biofuels in the maximum percentage ratio as established in the Ordinance under Art. 8, Para. 1 of the Clean Air Act.

Friday, April 9, 2010

Potential of renewable energy sources in Bulgaria

Bulgaria has a certain potential of renewable energy sources (RES) and could cover part of its energy needs through utilization, development and exploitation of the renewable sources. RES are domestic resources and their utilization would contribute for reduction of the energy resources import dependence of the country and will also have a positive social effect.
The following is stated in the technical adaptations to the Bulgarian Accession Act concerning 2001/77/EC Directive on the promotion of electricity produced from renewable energy sources in the internal electricity market:

Bulgaria could accept for realistic a target of 10 % share of the RES electricity in the gross domestic electricity consumption till 2010. Furthermore it is possible to achieve a target of 11 % climate conditions are favorable.



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The increasing prices of the petrol, electricity problems in major geographical areas, the ambitious environmental goals of the European Union and the need for new energy sources are only some of the preconditions which have led to the idea for developing of new Law on Renewable and Alternative Energy Sources (AES) and Biofuels (prom. SG-49 of 19.06.2007 amended SG-98 of 14.11.2008, into force since 14.11.2008).
The Law regulates the public relations related to the support for production and consumption of electrical, heating and cooling energy from RES and AES, as well as the consumption of biofuels.
The main goals of the Law are the following:
• Support for the development and utilization of technologies for production and consumption of RES and AES energy and consumption of biofuels;
• Reduction of the expenses for import of energy resources;
• Increase of the capacity of the small and medium-sized enterprises, RES and AES energy producers and biofuels producers;
• Diversification of energy supply;
• Creation of conditions for achievement of sustainable development at local and regional level and;
• Protection of the environment.
The new RES installations are obligatory connected to the electricity grid with a high priority. This means that the RES producer will be preferentially connected to the electricity grid before the producer of any other conventional electricity.
So far the State Regulatory Commission has set the feed-in tariffs for hydro power plants, biomass electricity, wind power energy and photovoltaic energy. The State Regulatory Commission will set up the feed-in tariffs for other RES when the request from an investor has been made.
A long-term contract for obligatory purchase of RES electricity at feed-in tariffs set by the State Energy and Water Regulatory Commission is established for all new producers starting production before 31 December 2015. These contracts are for:
• 25 years – for the PV and geothermal energy;
• 15 years – for all the other RES, including the hydro power plants up to 10 MW installed capacity.