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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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