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Home > Latest News > Potential Bulgarian grid blackouts

Bulgarian renewable incentives could result in grid blackouts

Government incentives for the production of renewable energy in Bulgaria has resulted in an onslaught of projects. Such is the overwhelming response to the incentives for biomass, wind and solar energy systems, a total of 11,000 megawatts to September, that there is a fear that the abundance of new projects could cause national grid blackouts.

The high voltage grids in Bulgaria are run by the state electricity system operator (ESO). Their chief executive, Ivan Ayolov, has given an interview in which he has stated his belief that stricter regulation should be implemented to prevent this overwhelming response. He also likened the current situation to the Klondike gold rush.

Ayoloy stated: “This has to be stopped in an intelligent way, otherwise we face a catastrophe. At this stage the grid is reliable. Its capacity (for new installations) is 1,800 MW but it is not reliable when it comes to 10,000 MW.

Currently Bulgaria relies heavily on nuclear power and coal as its main sources of energy. This is common in former communist states. However, as a member of the European Union there is a requirement to meet EU targets regarding renewable energy. As such, Bulgaria must achieve 16-20 per cent green energy by 2020. The incentives currently offered by the Bulgarian government are driven towards these targets. The result has been a boom in wind power projects across Bulgaria and Romania while many solar projects have been developed in the Czech Republic.

Already, the difference in Bulgaria's renewable energy is tangible. In the past year, their wind energy capacity has jumped from 103 MW to 330 MW. The fear, of course, is that the grid will be unable to cope with the demands of these renewable energy systems. The north-eastern region of Varna has already been subject to a freeze on turbine connection by state power utility NEK. They have also issued warnings that power outages may occur due to the increasing numbers of wind projects.

Mr Ayolov suggested that a strategy for sustainability while the country strives to meet EU targets is necessary to work alongside the government incentives. He believes that this would lessen the strain currently being put on the power grid. A plan is expected to be submitted to Brussels by June next year which will detail regulations for connecting energy sources to the grid and applicable capacities. This is being prepared by the Economy and Energy Ministry. Another issues, of course, is that of determining which investors are serious about renewable energy production and which are merely speculators. ESO suggests tackling this by requesting that investors pay a five per cent deposit against the value of their project, to the state.

The legislation that exists places a requirement on the three power utilities in the region – Austria's EVNVI, Germany's E.ON and Czech CEZ – and also NEK to prioritise renewables when connections are made to the grid system. They are also each responsible for covering any associated costs, which apply to upgrading their grid connections when linking new capacity.

Suggestions by experts estimate a necessary 40 million levs (equivalent to $30.49 million) to connect 100 MW to the energy grid. 300-350 million levs have been invested annually by NEK for overhauls and maintenance.


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