Bulgaria’s Participation in Negotiations for the Recovery and Resilience Plan
Bulgaria has taken a stand in the negotiations for the Recovery and Resilience Plan, including the inclusion of the REPower EU chapter. This decision was made due to the resolutions of the National Assembly, which contradict the measures planned by the Council of Ministers for negotiations. This became evident during the meeting of the Commission on European Affairs and Monitoring of European Funds, where the acting Minister of Finance, Lyudmila Petkova, the acting Minister of Energy, Vladimir Malinov, and the Deputy Minister of Environment were heard.
Victor Atanasov: Bulgaria’s Commitment to Reduce Carbon Emissions
The Bulgarian government has made a commitment to reduce carbon emissions from electricity production by 40% by the end of 2025. This goal is still part of the Plan, despite a decision by the National Assembly to negotiate this target and preserve coal power capacities. However, the detail now is that the change in the set 40% reduction will be general for the industry, without specifying specific capacities.
According to Vladimir Malinov, this goal has already been achieved under purely market conditions, excluding 2022 when power plants were shut down due to unforeseen circumstances. Bulgaria is on track to meet its targets and contribute to the global effort to combat climate change.
Energy Minister Confirms Success in Achieving Emission Targets
The Energy Minister announced that due to the shocking market situation, the set emission targets have been successfully achieved as of 2023 and the first half of 2024. He further stated that the expectations are for the goals to continue to be met in the future, taking into account the expired contract of the “ContourGlobal Maritsa East 3” TPP and the upcoming conclusion of the agreement with the “Galabovo” TPP. No administrative or coercive measures have been taken to shut down such capacities. The overall threshold for harmful emissions, without being divided by installations, has been met.
Update on Climate and Energy Roadmap
The Commission’s stance on the matter was considered acceptable by Minister Malinov. The updated Climate and Energy Roadmap sets specific deadlines by which these power plants, following market principles, should continue to operate until 2038, as explained by the minister responsible. However, the proposal to maintain the 40% targets contradicts the decision of the National Assembly of January 12, 2023, which either needs to be modified or the Plan’s update finalized despite it. According to the Deputy Minister of Environment and Water, negotiations are ongoing.
Changes in Bulgarian energy sector
Recent negotiations in Bulgaria have led to potential changes in the energy sector, which could be implemented without parliamentary approval. The strength of the negotiation package that Bulgaria presents will determine the outcome of these changes.
Separation of companies
One significant change being considered is the separation of “Bulgartransgaz” and the Electricity System Operator (ESO) from the Bulgarian Energy Holding (BEH). Instead, Bulgaria is proposing a ban on cross-subsidization by operators towards other companies within the BEH group.
However, the European Commission is not satisfied with these proposed measures and considers them insufficient.
The Importance of Maintaining Energy Operators in Bulgaria
The issue of cross-subsidization is not a measure with an equivalent effect, according to experts. As stated by Malinov, the removal of BTG and ESO from BEH does not pose a risk for the operators, but it does for a group within BEH. Our country should make efforts to preserve the operators within the framework of Bulgarian energy.
Challenges for REPowerEU
In order to have REPowerEU, the decision of the National Assembly to remove “Bulgartansgaz” and ESO from BEH must be reversed, the 40% restriction must be lifted, and liberalization must be completed with a clear deadline by July 1, 2025,” explained Asen Vasilev. According to him, GERB should…
Reconsidering the Decision on Coal
It is imperative to rethink the decision on coal. Malinov confirmed that one possibility is to lift the ban on negotiating the target by mid-September, as imposed by the NS decision. Another option is for us to continue trying to propose alternative measures with equivalent effects that would be acceptable to the Commission.
The negotiations are ongoing. The EC has requested additional guarantees from Bulgaria that the process of liberalizing the retail electricity market will be irreversible. Our country still has steps to take in order to meet these requirements.
Energy Sector Reforms in Bulgaria
Bulgaria is currently undergoing significant reforms in its energy sector, with new regulations being implemented and a commitment from the Ministry of Energy to conduct an information campaign. The final document is expected to be presented by mid-September, and potential approval from Brussels may come by the end of the year.
There are other reforms outlined in the Plan that have not been executed, particularly related to legislation that is facing challenges in the National Assembly. In mid-September, Bulgaria will receive an assessment from the European Commission on the second payment, and if these reforms are not implemented within a 6-month period, consequences may follow.
The Impact of Legislative Acts on Second Payments
Ludmila Petkova explains that reducing second payments is crucial. According to Vassilev, there are four legislative acts in Bulgaria that put the country in an “impossible negotiating position” – the energy charter, the rules for selecting members of the Anti-Corruption Commission, the Personal Bankruptcy Act, and the Whistleblower Protection Act, which should have no time limit for the year in which a report is filed.
Victor Atanasov, Deputy Minister of the Ministry of Social Welfare and Youth, confirmed that second payments depend on several acts that parliament must adopt. In order to avoid any issues, it is important to carefully consider and address the impact of these legislative acts on second payments.
Progress in Parliament
The implementation of the entire plan must continue according to the procedure,” he commented. Kiril Petkov of the PP-DB promised that this Thursday the bill for personal bankruptcy and whistleblowers will be discussed in the Commission in order to move forward.
According to Nikolay Denkov (PPP-DB), “we must be honest with Parliament, what depends on them.” The market will take its toll, both in terms of power plants and mines, and in fact we are missing out on the funds that could help people affected by this situation in one way or another.
EU Commission Considers Update to REpower EU Investment Plan
“It’s already happening,” he said. The EU Commission is now considering the update to the Plan and investments in REpower EU together. This update aims to boost renewable energy production and reduce carbon emissions in the European Union. Stay tuned for more updates on this important development!
