Energy & Utilities

Energy & Utilities

Bulgaria has very well developed energy sector which is of crucial importance for the Balkans and the whole South Eastern Europe. Bulgaria is a major producer and exporter of electricity in the region and plays an important role for the energy balance in the Balkans.It accounts for 18,2% of total industrial production and employs 10.9% of the workforce in the secondary sector. The country’s strategic geographical location makes it a major hub for transit and distribution of oil and gas from Russia to Western Europe and other Balkan states. Large-scale prospects for wind energy development and photovoltaic systems have spurred the construction of numerous wind farms and energy centrals, making Bulgaria one of the fastest-growing wind energy producers in the world.

Renewable Energy

After Bulgaria joined the European Union on 1 January 2007 the renewable and alternative energy sector underwent rapid developments, as under the Treaty of Accession, Bulgaria has undertaken to achieve an 11% share of the electricity generated from renewable energy sources in gross electricity consumption by 2010. Thus, the applicable legislation currently provides for a favourable investment climate in renewable energy generation. The geography and climatic conditions in Bulgaria provide excellent opportunities for production of solar energy. With an average annual radiation of 1400 kWp/m2, the country ranks among the most suitable locations for extraction of solar energy in the European Union.
As part of national policy for production of renewable electricity, steps 311 and 312 and the program for rural area development, there are financial incentives offered which are up to 70% of the investment cost. Bulgaria, being a committed party to the Kyoto Protocol and because of its obligations to the EU, consistently introduces various long term incentives and preferences for the use of renewable energy sources.

Energy Efficiency

Bulgaria has a national indicative target to reach 9 % reduction in energy consumption by 2016 and intermediate indicative target to reach 3 % reduction in energy consumption by 2010.Respectively, the Energy Efficiency Act (EEA) stipulates improvement of the energy efficiency as major factor to increasing competition of economy, achievement of security of the energy supplies and environment preservation.The specific measures and actions to promote the EEA aims are listed in an Ordinance for defining the methodologies for setting the national indicative targets as individual targets for energy savings between the parties envisaged in Article 10, para 1 of the EEA, permitted measures on energy efficiency and methods for assessment and ways of confirming the energy savings (in effect as of April 10 2009).